What is a landlord representative?
A landlord representative is simply a listing or leasing agent who represents the best interest of a building owner or landlord. It is the representative’s job to either sell or lease the office or industrial space for the highest amount possible, with the lowest out of pocket cost, to the best-qualified prospective buyer or tenant.
Why you should work with a landlord representative
Landlord representatives play a crucial role in properly positioning and marketing your commercial property. They have extensive knowledge of market trends, the local real estate landscape, tenant migration patterns, and how to best connect you with your target audience. Furthermore, when emotions run high, as they can when large amounts of money are being negotiated, a skilled landlord representative can act as a professional buffer between the parties in order to ensure a healthy landlord/tenant relationship exists once the transaction is complete.
Our Denver landlord representation services include:
Competitive market analysis
As your real estate representative, we’ll conduct a SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis and compare your property against similar properties that will directly compete for your prospective tenants. We’ll take that knowledge and use it to create a customized marketing strategy to ensure you reach high-quality prospects.
A proactive leasing strategy
We take a proactive approach to match your property with viable, well-qualified tenants. It is our mission to maximize occupancy while minimizing vacancy, downtime, and the landlord’s out-of-pocket expenses so that your leasing strategy aligns with your overall investment goals.
Long-term tenant retention
At Fountainhead, we work diligently to foster long-term tenant relationships in order to ensure existing tenants renew their leases at expiration. In doing so, we save you money in leasing fees, downtime, and new tenant improvement costs, while the value of your property appreciates over time. We consistently communicate with your tenant base to avoid ‘surprises’ like a default, we closely monitor local real estate trends, as well as national macro-economic factors, so you can rest easy knowing, that when fully-stabilized, your investment will be in a great position to maintain full occupancy.
Office and industrial space post-pandemic
As you can imagine, the COVID-19 pandemic has had a significant impact on office and industrial leasing. The crisis has created many commercial real estate challenges and we’ve seen some trends emerge as a result:
- Struggling non-essential retailers are shedding both retain operations and warehouse space used for inventory.
- Businesses are offering their employees more remote work opportunities and are evaluating whether or not some of these functions, previously thought not to be viable remotely, are now feasible on a long-term basis, which will impact how much space tenants occupy in the future.
- The Denver-metro industrial real estate market has remained steady, with record levels of development still in the pipeline.
- Online ordering and e-commerce have increased, signifying an increased need for distribution warehouse space minimizing future supply disruptions.
- Plummeting oil prices could have a significant effect on supporting firms that lease office space in Denver’s central business district.
So, what do these trends mean for you? For starters, real estate investors will have to adapt to these shifts in tenant preferences. It is too soon to determine if these trends create a ‘new normal’ but we are certain that any residual impact will affect how buildings are leased and how office and industrial space will be utilized by tenants moving into the future. While there are certainly new risks that must be considered in post-pandemic investing, there will be value-add investment opportunities popping up for the savvy investor to take advantage of in the months ahead.
Value-add investments in a post-COVID-19 CRE market
CoStar, a commercial real estate information company, expects between 11% - 14% of CMBS loans to default in the United States due to the COVID-19 pandemic.
Per CoStar’s forecast, properties that default on their loans will have a reduced sales price of approximately 66% on average, on a national basis. And the properties that do NOT default on their loans are still expected to have a reduced valuation of approximately 16%.As Commercial Real Estate valuations decrease, there is a silver lining for investors that have ‘dry-powder,’ or cash and intestinal fortitude. For them, COVID-19 is creating ‘value-add’ investment opportunities that have not existed for many years. As these opportunities arise, investors should ensure they work with Fountainhead Commercial to gain an in-depth understanding of leasing trends and opportunities as well as a solid understanding of the investment risk/return of a particular asset.
Find Denver landlord representation today
If you’re in need of Denver landlord representation, reach out to us at Fountainhead Commercial. If you’re looking for best-in-class service leasing performance and lease-up strategies to attract top tenants, you can count on our experienced commercial real estate team. We are your trusted, go-to source for office and industrial landlord representation. Contact us today to learn how we will work as your representative and support your real estate goals.