Commercial Letting Management Programme copy 1

The letting of Commercial Real Estate is not just about providing a place to run a business, but also a strategic investment.  One must source and provide sufficient and adequate letting space that is perfectly located and priced within the already competitive market.

The commercial letting market differs vastly from the residential market.  It requires proper knowledge of Commercial markets, legal obligations and the understanding of tenant mixes and terminology like footage.  It also helps to have the right connections.  Commercial Brokers/Agents help to make the commercial renting process quicker, ensure that the lettable space is a good match and negotiate all aspects of the letting process.

Initial rental is determined by comparing the current market rental of similar properties (similar in size and area) and by calculating the expected Return on Investment (ROI). These calculations usually include expected building-related expenses, scheduled maintenance and enhancements or other major capital expenses.  The stream of income generated must be profitable for the lessor.  Keeping rentals in line with market rentals, makes the property more attractive for potential tenants and curbs vacancies.  The letting of Commercial property remains a risk for the investor (lessor).  The Lessor will let the property in return for a regular stream of income.