Commercial Leasing

After a big housing boom with highly appreciated prices and growth, the commercial and retail centers are sure to follow. It's the normal progression of growth and where all the new money and appreciation is going to go. Ultimately, as investors buy new commercial spaces they will need retail tenants to fill the vacancies. Commercial leasing is rapidly becoming the popular topic. Ray Alcorn provides some great advice on how to attract commercial tenants for your retail projects.

The most effective way to approach retailers is to be well prepared when you do. The first thing they'll want to know are three demographic factors for one, three, five and ten mile radii respectively... population (and growth trend since 2000), household income, and employment stats. You can get a full demographic report from a number of free sources, including Loopnet.com and www.freedemographics.com, but the most detailed info are from the paid sources. I use www.sitereports.com, but that's not an endorsement.

You'll should also have a schematic drawing of the center showing the space available, a site plan, location map, and an aerial photograph with major developments (such as big boxes, shopping centers, malls, etc.) and roads highlighted. It's also nice to have an architects rendering of the center. A list of co-tenants is also handy, but if you don't have anyone committed yet you'll have to hold off on that.

Put the above info into an 8 x 11 two-sided, color brochure. That will be your main collateral piece to email, mail, fax and hand out to prospective tenant reps. Be ready with rental rates and build-out allowances.

Then you're ready to talk. The marketplace that brings retailers and developers together is through the International Council of Shopping Centers (ICSC). You can find meetings for your area at their website at www.icsc.org. You'll want to join, as that's also the best source of educational information for retail property anywhere. You can also check out the tenant "haves-wants" lists and databases at www.dealmakers.net and www.crittendenonline.com. (Again, those are referrals, not endorsements) Both specialize in providing current information on retailer expansion plans.