For first-time tenants, there’s no room for error when setting up a business – the risk of failure is too great. If a business is unsuccessful in its first store, it has no chance of expanding. An agent who can help maximize potential and provide them with the ideal location that serves as the perfect launchpad to ensure long-term success in their venture is vital when conducting tenant representation.
Sales projections will be a key indicator of the location of the property. As an agent, sales projections are essential to help you find the perfect property for a tenant’s needs. When it comes to sales goals, for example – making over $500k in their first year of business, carefully considering the location is critical. To ensure your clients get off on the right foot and set themselves up for long-term prosperity, scout out areas with plenty of consumer traffic and limited competition – these attributes can give them that extra bit of support they need to skyrocket.
The business plan is the foundation for the path to success. As an agent, understanding a tenant’s business plan is essential in helping them succeed. To get started, it pays to ask questions such as: What are their goals? Where do they see themselves going? How big or small should the property be based on short- and long-term plans? Once you have determined this information by questioning tenants about mission statements and access needs for resources–like the needs of a mom & pop shop versus the needs of a billion-dollar warehouse–you can confidently guide clients toward making informed decisions that benefit everyone involved. This way, you help ensure maximum potential from their space while reaching your leasing objectives.
Demographics are a key component when choosing the perfect property for a tenant. When starting a business, it pays to ask questions. Where is the best spot for success? What demographic is likely to be most interested in what you offer, and do they have the necessary means? There’s no use opening up a luxury car rental service where incomes don’t match – so analyzing an area’s average household income can prove valuable. To that end, exploring not just HHI and population but also consumer traffic (how many people are frequenting shops?) as well as industry trends (what products or services will result in more spending?) could give potential tenants insight into how viable their business venture may be. Find out who has access to your product – where there’s wealth combined with need and disposable funds; this is prime real estate.
Finding the perfect location for your tenant can be daunting, but with proper research and investigation, it doesn’t have to be. Tenant rep is all about making educated decisions based on sales projections, business plans, and demographics. The right spot could mean generations of success – pinpointing growth opportunities as well as avoiding pitfalls that stand in the way of long-term prosperity. With intelligence comes power; use yours wisely to help tenants build their future and your own.
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