There are a lot of things to consider when you purchase a new commercial property. One of the first things you need to decide is if you should keep the existing leasing team or you should hire a new one. Your leasing team is one of the most important determining factors in the success of your property, so you shouldn’t make this decision without considering all your options.
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While each property and team is different, in this article we’ll explain the reasons you may want to stick with the current leasing team and the reasons you may want to switch to a new one.
Reasons to Keep the Existing Leasing Team
The existing leasing team has a good track record
If the existing team is reputable and has a record of success at a property, it may make sense to keep them engaged on the property.
Do research to find out about the team to make sure you’re making the right choice. When doing your research, ask for statistics and look at rental rates and vacancy rates over their time leasing the property. You will also want to be sure their vision for the future aligns with yours.
Additionally, be sure to look at their current momentum at the property. Are they in the midst of securing some top tenants for the project? Are they in the middle of an extensive marketing or branding initiative? If wheels are turning, it may make sense to keep the team in place in order to keep this momentum going rather than having to get a new team up to speed.
The current team is familiar with the property
A familiar leasing team will know what has worked in the past when leasing a property. They know the ins and outs of the property and also know what kind of tenants are interested in the property. The existing leasing team will also have the tour “script” for the property down. A new leasing team would have to learn the space themselves and craft a new tour script based on guesses about what these particular tenants are looking for.
The existing team likely knows what concerns tenants typically have with the property and what excites prospects about the building. They may even have recommendations about improvements or marketing techniques that could be implemented in order to best position your property based on these insights.
The current leasing team may also have strong relationships with current tenants and property managers. Leveraging these relationships can help you keep the space occupied and prevent vacancies.
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There is already a successful marketing strategy in place
If the existing leasing team already has a successful marketing strategy or campaign in place, it may not be in your best interest to disrupt the momentum. It can be hard to start from scratch with marketing.
The existing leasing team likely already has the basic marketing materials like flyers, emails, and signs in place and rolling out, and it can take a long time to remake these from scratch.
They may also have a more complex marketing strategy in place for the building, including ads, video, messaging, and more. Be sure to understand what marketing initiatives your leasing team has in place and ensure that the property has a strong market presence.
Ultimately, if it’s not broken don’t fix it.
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Reasons You May Want to Hire a New Leasing Team
The current leasing team isn’t performing well
Poor performance may look like many things. It could be a lack of deals in the pipeline or long-term vacancies at the building. It may be decent occupancy but with below-market rents. If your current leasing team doesn’t have any deals or has the wrong types of deals, this may be a sign you should switch to a new team. Another red flag is if the existing team doesn’t have adequate marketing in place or has tired outdated marketing materials. If your leasing team isn’t providing the basic marketing materials, you should probably hire a new team.
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Bring new energy and ideas to the property
When it comes to marketing commercial property, people can get tired of seeing the same information and campaigns for a property over and over again. If your property leasing efforts have gotten stale, a new leasing team may be able to bring in fresh marketing ideas and leasing strategies to bring new life to your property.
This could come in the form of new marketing collateral, fresh email campaigns, and more. It could also involve innovative tenant rep nurturing campaigns, from events, tours, and lunches to strategic mailers, calls, and ads.
If you’re purchasing a large property with a stagnant marketing campaign or a building that has a stigma attached to it from the old owner or that has been recently overhauled and renovated, it’s even more important that you choose the right leasing team. This is because you will likely want to put substantial money toward new marketing materials and strategies in order to change the market’s perception. Make sure your leasing team can meet your needs when it comes to advertising, video, a property website, or whatever else you have in mind. Different leasing teams will have different contacts – make sure yours is using the best vendors to aid with your property marketing.
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You may have a trusted team that you want to bring in
If you have a leasing team that you already have a relationship with and trust, bringing them in can make the transition much smoother. When your team knows what you need and you know what to expect, things can get put in motion very quickly – saving you time and money. However, it’s important to evaluate the current team’s abilities and your trusted team’s capacity before choosing to switch simply based on an existing relationship.
You should evaluate the criteria above for the existing team of course, but also make sure your preferred team has the expertise to handle this type of property, a knowledge of the market in which the property plays, the marketing resources to successfully position your property, the bandwidth and lack of conflicting interests to take on the assignment, and more.
If you decide that you do want to make a change you should do it quickly, don’t wait. Doing so allows you to make the biggest splash and reintroduce the property to the market all at once, alongside the new ownership.
When you purchase a new property you may be hiring a new property management team as well, changing the teams all at once will make for an easier transition
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Thinking of switching your leasing team after taking these options into consideration? Schedule a consultation with our project leasing team to see if they might be the right fit for your property.