How do you handle commercial leasing market uncertainty?

1 Assess your situation

The first step to handle market uncertainty is to assess your current situation and goals. For landlords, this means evaluating your occupancy, cash flow, expenses, and debt obligations. For tenants, this means reviewing your lease terms, space needs, and budget. For brokers, this means analyzing your pipeline, commissions, and market trends. By doing this, you can identify your strengths, weaknesses, opportunities, and threats.

2 Explore your options

The next step is to explore your options and alternatives. For landlords, this could include renegotiating leases, offering incentives, diversifying tenants, or selling or refinancing properties. For tenants, this could include requesting rent relief, subleasing or assigning space, or relocating or expanding to new markets. For brokers, this could include expanding your network, diversifying your services, or specializing in a niche. By doing this, you can weigh the pros and cons of each option and compare them to your goals.

3 Monitor the market

The third step is to monitor the market and stay updated on the latest developments and data. For landlords, this means tracking the supply and demand, vacancy and absorption, rents and concessions, and sales and cap rates of your property type and location. For tenants, this means following the availability and affordability, amenities and quality, and location and accessibility of your desired space type and market. For brokers, this means researching the market conditions, opportunities, and challenges of your target clients and sectors. By doing this, you can spot trends, opportunities, and risks and adjust your strategy accordingly.

4 Communicate effectively

The fourth step is to communicate effectively with your stakeholders and partners. For landlords, this means maintaining a good relationship with your tenants, lenders, brokers, and vendors. For tenants, this means keeping in touch with your landlord, broker, subtenants, and employees. For brokers, this means providing value and service to your clients, prospects, and colleagues. By doing this, you can build trust, loyalty, and collaboration and resolve issues and conflicts.

5 Plan for contingencies

The fifth step is to plan for contingencies and prepare for different scenarios. For landlords, this means creating a reserve fund, securing insurance, and updating your lease clauses. For tenants, this means setting aside a buffer, reviewing your insurance, and negotiating your lease clauses. For brokers, this means diversifying your income, managing your expenses, and updating your contracts. By doing this, you can mitigate risks, protect your interests, and cope with unexpected events.

6 Seek professional advice

The sixth and final step is to seek professional advice from experts and advisors. For landlords, this could include consulting with an accountant, a lawyer, a property manager, or a broker. For tenants, this could include hiring a broker, a lawyer, a space planner, or a mover. For brokers, this could include joining a mentorship program, a professional association, or a training course. By doing this, you can gain insights, guidance, and support and improve your skills and knowledge.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?