What is the process for leasing out my vacant property?
Each property faces its own unique challenges and opportunities. As such, AGM Commercial creates a customized marketing plan anytime we are engaged to lease a property. That being said, there are several steps that the professionals at AGM Commercial go through to ensure a property is marketed as effectively as possible.
The first question we ask any potential client is: “what are your goals?” Some of our clients simply want to have their buildings lease as quickly as possible, and it is of secondary importance to get the highest possible rent. Others are hoping to generate as much cash flow as possible and are willing to be patient to achieve those ends. We give our clients an honest assessment of what we believe the property is worth on the leasing market, as well as what costs they will need to bear in order to achieve those values. One thing AGM Commercial will not do is simply take a listing to gain exposure for ourselves. We will not promise an unobtainable number. Doing so, in our experience, ends up with a frustrated client due to providing unrealistic expectations.
Once a value is determined and our client is aware of the costs that will be incurred to lure tenant(s), AGM Commercial goes about gathering as much relevant information as possible to help us market the property. We look into things that allow us to differentiate the properties that we represent. Rather than using common phrases like “newly renovated lobby” or “high-end finishes”, AGM Commercial prefers to notate items such as “new dual-station fed, dual-entry, redundant power supply and diverse entry points for data and telephone communication have been installed.” Providing specific, actionable information for prospective tenants has proven to enhance the perceived value of the properties of our clients.
In terms of getting the message out, some of the techniques we use are proprietary. However, a general overview of some of the primary items we use include the use of broker and internet databases similar to the multiple-list services used for homes, cooperating broker email alerts, targeted tenant prospect email notifications and door-to-door canvassing. Our proprietary in-house databases allow us to notify prospective tenants based on their location, size, and current lease expiration. By not only working hard, but working smart and investing the time and energy on the front end of a leasing assignment, AGM Commercial is able to best position our client’s properties to be exposed to the most qualified leads and have the best possible opportunity to successfully lease their building.
Can AGM Commercial help me determine the value of my vacant property to figure out what we should charge in rent?
Not only can AGM Commercial do this, but we view it as the single most important thing we do for our clients. Even the best marketing plan, if priced too high for the market, is destined to fail. It is our philosophy that we would prefer to turn down a leasing assignment rather than promise an unrealistic price. Buildings priced too high for the market tend to remain unleased, frustrate their owner, and negatively affect our relationship with our clients.
It is also incumbent on AGM Commercial to educate our clients (to the extent necessary) as to the total economic deal that they can expect. An office building in a particular submarket may generate a rent of $25 per square foot, but getting there may require an investment of money for tenant improvements. Some markets will allow for this investment to be structured in different ways, and some are less flexible. In either case, by providing our clients with accurate information instead of unrealistic expectations, our clients are prepared for what the market will dictate, thereby allowing them to get their buildings leased and quickly and effectively as possible.
What does it cost to use AGM Commercial?
There is no set fee or commission rate prescribed by law. AGM Commercial’s commission structure is typically six percent (6%) of the gross lease value over the term of the lease. Certain circumstances may cause our fee to increase or decrease depending on the amount of work we believe will be required to be successful.