1. Alienating Tenant Brokers – Commercial Real Estate Brokers are not afraid to share opinions of properties and landlords with their colleagues. Defaulting, negotiating down after the fact, or slow paying on commissions is a sure fire way to retard future leasing efforts.
2. Overly Complicating the Lease – Everyone acknowledges that it is important to have a solid and secure lease, which fairly lays out the intentions of both the tenant and landlord. In every tenant’s mind though, there is an invisible line in the sand in which “enough is enough.” If the lease provisions and clauses become onerous or tilt too heavily in the favor of the landlord, it can be difficult to consummate the deal. Placing the tenant in a defensive posture is no way to complete a deal or forge a lasting relationship.
3. Over Estimating Property’s Value – Having a run down of competitive ask/receive rates is only part of the process in pricing a property. Someone, usually an unrelated third party such as a broker or colleague, should provide the owner with an unbiased estimate of competitive value. Pricing the property from the outset is important.
4. Nit Picking on the Deal – Many a deal have been killed over seemingly minor issues, based on the perception that too much had been acquiesced earlier in the negotiation. Sometimes a little perspective is necessary.
5. Failure to Properly Investigate the Tenant’s Creditworthiness. Provided that it adds value, personal guarantees or large deposits can make the deal more attractive to the landlord.
6. Failure to have a Strategic Leasing Plan and Sticking with the Plan. If the idea is to have a Class A building, then lease to Class A tenants with a compatible Class A mix. Reaching on a tenant that is outside of the box can alienate other tenants and lead to an increase in vacancy.
7. Failing to Create a Value-Added Message – This is the building’s elevator speech…the message that can be told in the short time period that it takes an elevator to go from one floor to the next. “This is a great building because……..” It might sound hokey, but everyone from listing and tenant brokers to maintenance staff will understand how to sell and service the building based on what the perceived value of the building is.
8. Lack of Attention to Details – Cluttered common areas, shoddy landscaping and wilting decorative plants in the lobby can create negative attitudes from current tenants and place downward pressure on asking rates for prospective new tenants.
