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The Importance
of Real Estate
Leases
www.dncommercial.net
• Leases are the
foundation of property
performance. The best
salespeople understand
the leasing process and
the high value that it
brings to the future sale.
A good lease can
enhance a sale price
when the time comes.

• The way that leases work
for the property investor
will solidly impact on the
property and its
performance for the
duration of the lease. As
you work with tenants or
buyers for the
property, the type of
lease that applies will
also impact on the
negotiations. Let's look
at the main lease types
and expand on some of
the most relevant issues
for you.
• When it comes to leasing a
property and particularly a
retail property, the tenant mix
process will be very
important. This then says that
the single tenant lease should
be matched to the
surrounding tenants in the
greater property. That is how
you build 'clusters' of tenants
and strengthen the market
rent for the landlord.

• If you are going to look for
some of the leasing business
in the local area, choose the
best properties to work on
and the quality clients to
work for. There is a real
reason for this. Small and
single properties are usually
very 'hard work' to lease. If
the base rent is small, your
fee for a successful
transaction will also be small.
Focus your leasing effort on
quality properties with good
fee potential.
• Negotiating a commercial real
estate lease needn't be a
battle. Remember, and you
shouldn't have to remind the
landlord of this, that it is in
both of your best interests
that you are successful. If you
lease on bad terms, you go
out of business, and they
have no tenant. In fact, many
landlords now recognize that
providing "superior tenant
service" begins by making the
lease negotiation process as
simple and efficient for
tenants as possible.

• Bear in mind that oftentimes
they are going to be paid by
the landlord for filling the
space. Building a relationship
with your agent can be done,
just as building a relationship
with your banker, your realtor
you bought your home with,
or your advertising agent with communication. Ask
around, ask other agents, ask
the agent questions, leave
nothing to question.
• Negotiation leverage between
landlords and tenants has
shifted tremendously
throughout the last several
decades; however, it is now a
highly favorable market for
businesses considering
relocation. A surplus of office
vacancies has paved the way
for tenants to secure great
lease terms and let's face
it, due to the fierce
competition in the
marketplace, some landlords
are offering financial
incentives that are just plain
hard to pass up. It's now
possible for companies to get
into a higher-grade office
building in a better location at
the same rental rate, or in
some cases, an even a lower
rate than their current
building. However, change is

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The importance of real estate leases

  • 1. The Importance of Real Estate Leases www.dncommercial.net
  • 2. • Leases are the foundation of property performance. The best salespeople understand the leasing process and the high value that it brings to the future sale. A good lease can enhance a sale price when the time comes. • The way that leases work for the property investor will solidly impact on the property and its performance for the duration of the lease. As you work with tenants or buyers for the property, the type of lease that applies will also impact on the negotiations. Let's look at the main lease types and expand on some of the most relevant issues for you.
  • 3. • When it comes to leasing a property and particularly a retail property, the tenant mix process will be very important. This then says that the single tenant lease should be matched to the surrounding tenants in the greater property. That is how you build 'clusters' of tenants and strengthen the market rent for the landlord. • If you are going to look for some of the leasing business in the local area, choose the best properties to work on and the quality clients to work for. There is a real reason for this. Small and single properties are usually very 'hard work' to lease. If the base rent is small, your fee for a successful transaction will also be small. Focus your leasing effort on quality properties with good fee potential.
  • 4. • Negotiating a commercial real estate lease needn't be a battle. Remember, and you shouldn't have to remind the landlord of this, that it is in both of your best interests that you are successful. If you lease on bad terms, you go out of business, and they have no tenant. In fact, many landlords now recognize that providing "superior tenant service" begins by making the lease negotiation process as simple and efficient for tenants as possible. • Bear in mind that oftentimes they are going to be paid by the landlord for filling the space. Building a relationship with your agent can be done, just as building a relationship with your banker, your realtor you bought your home with, or your advertising agent with communication. Ask around, ask other agents, ask the agent questions, leave nothing to question.
  • 5. • Negotiation leverage between landlords and tenants has shifted tremendously throughout the last several decades; however, it is now a highly favorable market for businesses considering relocation. A surplus of office vacancies has paved the way for tenants to secure great lease terms and let's face it, due to the fierce competition in the marketplace, some landlords are offering financial incentives that are just plain hard to pass up. It's now possible for companies to get into a higher-grade office building in a better location at the same rental rate, or in some cases, an even a lower rate than their current building. However, change is