The fourth quarter of 2008 was a tough year for commercial real estate Atlanta agents. The price drop of 10.6% in fourth quarter of 2008, as recorded by the Massachusetts Institute of Technology Center for Real Estate, was undoubtedly a big shock for investors. But now, I can safely say that things have changed and investing in commercial real estate Atlanta is more profitable than investing in residential properties.
For commercial real estate lease, negotiation is the key to make things work your way. Here are some negotiation tips to make leasing more profitable for you as Atlanta real estate agent.
1. Evaluate the Span of Lease
Leasing includes hundreds of pages for documentation and long filing processes. It also includes application fee and many other charges. Overall, the process is hectic and exhausting. Most often, it is the responsibility of real estate agent to process documentation and legal filing. Here, you need to evaluate the time period of lease. If the lease span is less than 6 months then you will need to find another renter and go through the same hectic process of documentation. This is one point where you can negotiate with your customer.
2. Location of Property
Not all properties are ideal for commercial businesses. Factors like easy transport access, corporate sector in surrounding buildings and weather control make a property commercialism-worthy. Firstly, the Atlanta real estate agents need to invest in properties which offer ideal locations for businesses. Even if your property is not located in highly favorable location, yet you can find location factors to negotiate upon.
3. Read Intentions and Emotions
If the customer is dealing with you with the help of a broker then you need to negotiate professionally using factors which can profit at both ends. But if the customer is dealing in person then the biggest favor you can do to yourself is to read their emotion and intentions. Reveal property attributes as if you are discussing them with the customer. Meanwhile, try to read their intentions. For example, if the customer is not nodding the head then the customer is either very professional or not interested in the property. Raise the rate if the customer seems interested in your suggested Atlanta commercial real estate.
4. Start from 150% with Margins
A majority of the customers today visit the markets and compare the costs. The Atlanta real estate agents should start from 150% along with the approval of negotiation. For example, if the property lease price is $25,000 then start from $37,500 and gradually lower the rate. After filing it on consented rate which may be $25,000 or even higher, don’t forget to tell the customer that you reduced almost third part of the total price.
Remember to inform your customers that lease rates of locations inside shopping malls and centers may vary up to two to three times. Also, regularly check the average market lease rates and increase the rate on contract renewal if the market rates hike up.
Having said that, I am also looking forward to see you in my upcoming workshop on Four Steps to Become a Millionaire Agent. The seminar is set to be held on January 23rd 2016.