Commercial Property Leasing Activity Report – Your Complete and Foolproof Guide

When you manage or lease a commercial, industrial, or retail building you have to track the leasing issues, not only for the landlord, but also for the tenant. The performance of an investment property is impacted by rental and lease documentation in a variety of ways; you do not normally want a vacant property.

The Property Manager or Leasing Manager for the property has to keep things under control and on track to the property strategy, business plan, and tenancy mix.

To solve the problem it is best to run a leasing activity reporting process and update it at least monthly. Within each month the report becomes a moving tool to support the property investment for the landlord. It is a document that tracks:

  • Current lease activity
  • Forward lease changes
  • Vacancies

What you are normally looking to avoid here with the report is disruption to cash flow or something that disturbs the function of the property outside of any plans you may have. Accuracy in the report is paramount as it is likely to be the main document that keeps you abreast of critical lease issues. If there is an error in the report then you will likely miss a critical date on a lease, and that can be significant in the function of the property over the longer term for the landlord.

The leasing activity report is a forward looking report usually covering the next 12 months and everything that can happen to leases and licences therein. Special attention has to be given to anchor tenants, and tenancy mix strategies that are already in place; these strategies are already active and should be continued.

In a multi-tenant occupancy, the number of leases in the building can become daunting and diverse. When the landlord owns and operates a number of properties at the same time, the matter of lease stability is also complex. The leasing activity report keeps you on track.

A leasing activity report should include the following issues:

  1. A tenancy schedule of current leases including upcoming predicted or known changes such as rent reviews by type and timing, options for a further term, and expiry dates.
  2. Status of any current negotiations with tenants both new and established.
  3. Signed leases report (that is for existing leases for occupying tenants)
  4. Submitted leases report for documents that are outstanding for any reason
  5. Proposals for new leases pending a decision by the landlord or tenant
  6. Vacancy report of areas that are soon to be or are already vacant
  7. Marketing strategy and inspection feedback for vacant areas currently
  8. Prospects currently looking at the property and status
  9. List of vacant areas in competing properties nearby
  10. Changes to tenancy mix recommended
  11. Schedule of rentals in the current surrounding market to which you compete
  12. Overview of the types and level of incentive that exists in the surrounding market
  13. Target rentals and target lease terms
  14. Summary of recent leasing decisions made by the landlord in the last month that impact the property or any vacancy.

When you use these topics for your leasing report, it is clear for you to see that most things are covered and under control. In addition to the items above it is best to provide a time line graph of events both current and foreseen to help track events before they happen.

Your Perfect Guide To Financing Property Development

If you happen to be a property investor, a developer, or a landlord, there’s an array of commercial land and development financing options to kick-start your project. However, for many commercial realty investors, the alternative investment market is pretty complex and large. So through this post, we’re attempting to simplify commercial property financing options for investors like you who’re looking forward to developing their own commercial properties.

Commercial mortgages

Commercial loans are used for purchasing commercial properties, such as offices, warehouses, and shops. Broadly defining, these mortgages will work like their private counterparts only. That is, a commercial mortgage will work to spread the cost of any large purchase over a specific period of time-generally, a fixed number of years.

The plainest commercial finance type will be leveraged by existing businesses that want to invest/buy in their own premises; a place where a business is currently operating. One typical example is of a dentist who’ll want to buy a specific piece of land within the clinic’s premises. However, if the dentists can’t pay for that specific piece of real estate straight away, then the dental expert can avail oneself of a number of commercial mortgage options-for example, commercial bridge financing.

If you don’t wish contributing cash yourself, then it’ll be, sometimes, possible to get close to 100 percent financing by putting in additional security. However, for getting full financing, you must have a powerful trading record and a solid history of operating within the premise (where you’re looking forward to investing). If you talk of the businesses, then it’s easy for an established business to get a commercial fund; however, for a start-up, getting commercial mortgages is difficult as the lenders have to face a lot of risks.

Buy-to-let mortgages V. commercial loans

Now, there’s one more situation where a commercial loan will be suitable; according to this situation, landlords-having large property portfolios-will make the most of business loans whenever they’ll want to buy a lot of properties. Having such a portfolio, you’ll combine a lot of properties within one single mortgage. By doing so, you’ll be able to cut arrangement fees and even leverage economies of scale.

Such a commercial mortgage is different from a buy-to-let mortgage in terms of scale only. So this setup can be leveraged by only those landlords that have multiple properties. This specific mortgage type is never meant for those individuals who’re looking to acquire their first ever rental property-for them, it’s the buy-to-let mortgage option.

So that’s it, readers. If you’re looking forward to getting a commercial mortgage loan for land and development finance, you’ll have to touch base with some of the finest alternative financing lenders in the market. That’s because they’ll be the ones to cater to your commercial property financing needs easily and, most importantly, quickly.

A Systems Approach to Commercial Property Due Diligence (An Investors Guide)

Systems

A Systems approach to thorough Due Diligence will provide all the information you require to make an informed choice and most importantly, provide peace of mind. Commercial Property Risk comes in four distinct areas. Each of these risks must be specifically identified and mitigated against. We include all the activities associated with closing the purchase, even those outside the process of Market, Financial, Tenant and Physical Due Diligence. No single person can be expected to complete all the information search by themselves. No one can remember to perform a thorough discovery process, there is just too much information to cover. Due Diligence demands that a proven system be used, to get the results you require. Doctors invest the same way they approach any presenting set of risk symptoms: break down a symptom (risk), and search the smallest components and follow a proven system of (due diligence) discovery.

A system checklist provides a step by step information search you will require for both apartment and Healthcare or Medical Office Building (MOB) commercial properties. A checklist will organize your actions and make sure you complete your search. Do not do begin your search without a complete list!

The Letter of Intent can give the Seller time to gather the information you need. The Seller may also resist your request for certain documents or delay making them available. When you put a request for information in your Letter of Intent (LOI), you can negotiate your information requirements up front. The sooner you start, the sooner you will have the information and begin to implement a systems discovery approach.