by Alice Devine
Sample Script for a Property Overview and Introduction
(Point to locations on the aerial photo as appropriate.)
“To give you an overview, this is Cardinal Office Center, nestled with terrific access between Interstate 280 and Highway 101 alongside Highway 380, which connects the two. These two freeways serve as the major transit paths connecting San Francisco to the north with San Jose to the south. Cardinal Office Center offers seven buildings with nearly a million square feet of office space. Some of our long-term tenants include Fortune 500 Company A, Notable Technology Company B and International Firm C (tailor this list to the prospective tenant’s business). We pride ourselves on offering tenants a high level of service and maintaining long-term working partnerships.” (A note of caution here: know your audience. You don’t want to inadvertently tell your prospect that a competing company occupies an office adjacent to the suite you plan to tour! Switch suites if possible).
“Some of the property amenities include a fitness center free to tenants within this building (point to map), the Convenient Shopping Center (point) with a grocery store, deli, post office and several small shops, and XYZ Bank. There are three restaurants within walking distance—ABC Deli, ABC Restaurant, and 123 Restaurant. We also offer an on-site conference center for tenants, which can be reserved through the management office.”
“Let’s go take a look at the suites we have available for you.”
Prepare for Likely Questions
Once you can deliver a smooth presentation, work on addressing common questions or concerns that arise during the course of a tour. Drill yourself on your own property knowledge by making a list of potential questions a tenant or broker might ask. The challenge is to answer questions in a positive manner. For example, if you only offer exterior monument signs to tenants leasing over 10,000 square feet, do not simply say no to a tenant requesting 1,500 square feet. Instead, present an alternative, such as, “You’ll have signage on the main lobby directory and on your suite door on move-in day. We generally grant exterior signage rights for companies over 10,000 square feet. At the rate your company is growing, I expect you’ll have a space that large in a few years.” This ability to deliver a practiced presentation and answer impromptu questions results in a top-notch tour.
Some Typical Questions and Sample Answers
Question: How much parking will I get?
Poor answer: Your company will only get three spaces.
Better answer: We grant parking on a ratio based on square footage leased; at this property, it is three spaces for every 1,000 square feet of space.
Question: What if my company needs to expand?
Poor answer: We hope we have space for you.
Better answer: That’s a challenge we love to have. We have many examples of long-term tenants that have expanded over time. For instance, ABC Company initially leased 5,000 square feet, grew to 8,000 square feet, and just recently expanded its sales force and is now a 15,000 square foot tenant that has been here eight years.
Question: What type of tenant improvement package can I expect?
Poor answer: Our standard package is paint and carpet.
Better answer: The tenant improvement allowance is one facet of the lease package that depends on your space plan, square footage, rent, and so on. We typically work through those points in a proposal when we can address the whole package and have a better sense of what your company needs.
Lead the Tour
Day-of-Tour Prep
On tour day, visit the space yourself. There, you can pick up junk mail that’s been left, make sure the key works, turn on all the lights, and open the blinds. If you ask maintenance staff to complete these tasks, ensure that they understand your standards so the suite looks good when the prospective tenants arrive.
A Litmus Test
The basics—greeting people by name, a firm handshake, eye contact, warmth, and property knowledge instill confidence that a building (and landlord) is a good match. That’s because, as the tour guide, you embody the landlord. Even if you do not ultimately manage the building and may not even negotiate the entire lease deal, leasing representatives serve as a proxy for the landlord. Tenants wonder if you will be a good landlord. Can they trust you? In fact, Kingsley Associates research suggests that tenants do not differentiate between an independent contractor—such as a landscaper—and an employee, such as the property manager in charge of leasing.7 The tenants perceive any people working at the property as an extension of the ownership, regardless of their employment status and relationship to the landlord. As such, image and attitude become paramount for all building staff, from receptionist to engineer to property manager.
I once toured visitors from a large foreign engineering company. Although the session went well, the engineering firm executive wanted to negotiate with a representative who held a title equivalent to his own. My company quickly allowed me a commensurate title in order to get the deal done. The next day, the ink barely dry, I handed out a printed business card with a newfound title: Leasing Executive. (Luckily, I hadn’t had a card inside the marketing materials folder.) We went on to complete the deal. Negotiators have to feel that each side is empowered to make decisions, and thus, titles can be meaningful. And other times, culture can influence negotiations. (This incident begs the story of a promotion and salary bump, but that’s for another day.)
Establish a Rapport with the Broker
Typically, brokers accompany prospective tenants on a tour. By showing respect, you strengthen your relationships. Shake hands with brokers and allow them to introduce their clients. Then, you might acknowledge the broker’s relationship with the landlord, especially if it’s been a positive one.
I had a college buddy who enjoyed a career as a prominent commercial office broker. When he arrived at the building and we shook hands, he would squeeze my hand in a secret handshake. It took everything I had not to burst out laughing. Joking aside, I would turn to the client and say “You have a great broker. Peter has brought us stellar tenants over the years, and we look forward to working with all of you.” That way, everyone would know that we enjoyed a good working relationship. The broker knew he was valued and the tenants knew they were in good hands (no pun intended).
Decision Makers and Moles
When a tenant arrives to the tour, pay special attention to introductions. At this stage, you can often identify decision makers as well as discern how much influence the broker wields. In addition to the chief executive on tour, some leasing agents look for a mole, although not of the rodent variety. Shorthand for the employee that works closely with the company’s principals, the mole may be an office manager or administrative assistant. More accessible than the decision maker and less burdened with negotiation responsibility, a mole can provide valuable information about the tenant’s leasing process, criteria, preferences, and concerns. Good agents identify and cultivate this relationship over the course of the deal, starting with the tour.
A Critical Question
Where does the prospective tenant’s decision maker live? Most executives won’t voluntarily choose a long commute.
A Compelling Story
One of the basic tenets of leasing is learning about your prospect. Good landlords take a proactive approach to understanding tenant needs. Asking the prospective tenant the open-ended “tell me about your ideal office space” question before giving an overview of your property allows you to hear a tenant’s priorities. This type of dialogue also provides a barometer of how happy tenants are in their current space and helps you target your leasing pitch by emphasizing pertinent information during the tour.
In particular, leasing personnel often grapple with the issue of why a tenant is considering a move. This rationale informs you of tenant priorities and allows your highest and best use of resources. For instance, expending a significant amount of time on a tenant who is merely shopping the market
might allow other viable prospects to slip away to properties where they are showered with time and attention. So it’s up to you to evaluate tenants in order to best allocate leasing energies.
Some agents start by assuming tenants do not want to move, unless the tenant gives a compelling reason. Why? Because the thought of moving makes even the most competent office manager reach for an entire bottle of aspirin. It’s expensive, time consuming, and inconvenient. So listen closely. Do the tenants’ reasons for moving make sense? If so, you have viable prospects. If not, the tenants may be exercising you to compete against their existing landlords for a better lease renewal.
The thought of moving makes even the most competent office manager reach for an entire bottle of aspirin. It’s expensive, time consuming, and inconvenient. So listen closely. Do the reasons the tenant or broker give for relocation make sense? If so, you have viable prospects.
Lease long enough, and you’ll see the common reasons that tenants move. They include a tenant needing more or less space than an existing landlord can accommodate, a changed business that necessitates amenities such as more parking or airport proximity, a change in the tenant company’s management (the decision maker wants a shorter commute), and so on. In general, the more specifics tenants offer, the greater the likelihood that they are serious about relocating the office. Most landlords loathe losing an expanding (and thus, usually profitable) tenant. So unless you know that the prospect’s current building does not have any expansion space or other tenants dominate the rights to potential expansion space, the prospect may not be viable. And be wary of tenants who badmouth or have adversarial relationships with their current landlords. Is the tenant difficult to deal with? Does the tenant pay bills on time? Again, landlords don’t like to see solid, rent-paying tenants leave.
Last, let your instincts be your guide. The best leasing personnel have an ability to determine congruence between what someone says and the physical cues (face, tone of voice, posture) that accompany those statements. Whether innate or learned, this facet of emotional intelligence is an important tool in assessing prospects . . . and deciding how to allocate your leasing energy.
Five Questions to Ask on the Tour
Why are you leaving your existing building?
What is your current office location?
Where do your employees live?
Where does the decision maker live?
Can you describe your ideal office space?
That Warm and Fuzzy Feeling
When a tour is going well, you will feel a sense of engagement from the tenant and the broker, often demonstrated by eye contact, thoughtful questions, and time spent on the tour. Professionals consider a tenant who talks and provides feedback on the tour an indicator of a successful tour. When your instincts tell you all systems are go, zero in on the next step for that tenant by asking to schedule a space planning meeting and where to send the proposal to lease.
Recover from the Inevitable Goofs
The chef’s equivalent of a kitchen fire at dinnertime, awkward and challenging moments will arise during tours. While problems are guaranteed, it is the response that determines if you end up with dinner or disaster.
The following challenges are among the most typical. For example, a prospective tenant may arrive with an entourage worthy of a rock star. Outnumbered, you can be barraged with questions from ten individuals. Even the playing field by enlisting warm bodies; anyone with a pulse is fair game. Have the assistant property manager or building engineer accompany this group. Make a deft change by telling the client you are delighted to welcome a large group and say you’d like to ask for other members of the building management team to accompany the group in order to create a better tour. This shows the landlord’s ability to offer service and flexibility. Introduce these members of the management team who will ultimately work with the tenant. Your coworkers can help divide and conquer as they converse with members of the group (or unlock doors or push the elevator button), and you will be free to direct the tour and focus your energies on the decision makers.
Or, prospective tenants might arrive for a tour but refuse to divulge their company’s name. Relax. After all, some entity has to sign a lease. Savvy agents do not take offense, and assume there is good reason for anonymity. For instance, large or prestigious companies may be hovering on the verge of confidential business changes. Let the name go (for now). Rather, focus on information about the prospect’s business. Ask defining questions such as: Will the type of employees housed in this office drive their own cars or use public transportation (i.e., sales/executives or back-office space)? Do you prefer private offices (potential traditional corporation) or an open layout (potential technology firm)? Over time, you will gain a sense of the company culture that hints at the nature of a business.
With experience, you can craft your own positive solutions to tour challenges. In the meantime, however, think mitigation. The solution does not need to be perfect; you are just looking to improve the immediate situation. Afterward, ask effective leasing agents how they would have handled the situation. Experience and practice can turn difficult situations to your advantage, and at the very least, lend variety to your workday.
Talking Commission on a Tour? No
Sometimes, inexperienced brokers will question commission policies mid-tour; use a friendly manner to tell the broker you will call later that day to confirm brokerage issues. It’s best not to sideline the tour with the broker’s compensation matters.
Here’s how I once recovered from a tour gone awry: I had toured an insurance company seeking 5,000 square feet of office space through a suburban building south of San Francisco. Although the decision maker lived in San Francisco, she wanted accessible parking as well as some budget predictability as the city imposed a changing stream of taxes. Designed by renowned Gensler architects, the newly constructed Class A building offered a stunning glass atrium entrance with leafy green trees, easy parking access, and top-notch improvements including a fitness center and conference facility.
The tenant loved the building until she walked into the suite. Her face fell. As real estate people, we can envision the gray concrete shell of new space transformed into a lovely office. As lay people, the tenant sees a gray concrete shell. I tried to create a vision by visiting a nearby finished tenant suite, but the tenant still doubted the vacant space would look as good. Then, I finished the tour and let the company know we would love to have them as a tenant.
The next day, I asked the decision maker if she would come have lunch with me. Luckily, I got a second chance—the manager agreed. I raced to ask my contractor to hang the standard two-by-four-foot suspended light fixtures from the concrete slab above. By the next morning, the entire suite was illuminated (although it lacked an acoustical ceiling). It changed the space significantly. When the prospect revisited, she was pleased with the bright, pleasant suite. Moreover, after years of indifference from her existing landlord, she was impressed with our speed, creativity, and drive to solve a problem. We landed the company as a tenant and enjoyed many years of a solid relationship, which included two office expansions over the next seven years.
After the Tour
Some Self-Reflection
After the tour, take a few moments to reflect on what went well (and what didn’t). It’s a great practice to jot down some notes while the memories are fresh, whether it’s information about the decision maker or a specific request about the space. To grow into a better agent, assess every tour. And if asked, most brokers will also evaluate the tour, giving you valuable insight on strengths (and weaknesses) of your presentation along with tenant perceptions. Lower your defenses and listen—you may be surprised how others respond to your high level of conscientious service.
Thanks and Continue the Conversation
Conventional protocol advises thanking others within twenty-four hours—via email, text, telephone, or note.
As a bonus, a telephone call, with its ability for dialogue and nuance, allows us to gauge tenant interest in the space. Also, consider writing or emailing a note of thanks for their time to both the broker and tenant. Be sure to direct emails to both the brokers and tenants so you do not cause undue concern for the brokers that they will not be recognized (in the event of a commission). Regardless of a consummated lease, these gracious actions build relationships that help you in the long run . . . and make life a little more civil.
In addition to a polite thank you, some leasing personnel utilize a tour to initiate ongoing contact with the prospective tenant and broker. As an example, following up with a floor plan, the answer to a question, or simply additional information extends your relationships by creating opportunities for potential dialogue. And if, during the tour, you promise to send a floor plan or get back to the broker or tenant with information, do it immediately. As author Wallace Stegner’s character Larry Lang from the novel Crossing to Safety asks, “Can I think of anyone in my whole life whom I have liked without his first showing signs of liking me?”8 All prospects want to know that a landlord wants them, because attentive landlords value and treat their tenants well.