Finding and Selling the Tenant

Property managers of smaller buildings often doubt that they can be successful salespeople. True, sales is hard work, but a property manager must also be a salesperson. While you do not necessarily need to have the stereotypical, slick sales personality, you do need to know your building and the market conditions. You must also be able to convey the correct message to the right prospective tenant at the right time.

The first step toward succeeding in sales is to get over the fear of failure. Most salespeople are uncomfortable knocking on a door or introducing themselves to a stranger. Fear of rejection takes away motivation. However, knocking on doors and introducing yourself to strangers are the bread and butter of creating sales opportunities. If you knock on enough doors and make scores of introductions, the odds are that you will gain prospects. Remember, you are selling something someone needs, and that someone knows it. You just have to find that person.

As a career move, having sales experience is an asset that makes you more valuable as a property manager. In many organizations, the road to the top is through sales. This article will discuss some of most common ways for finding tenants, including:

  • tenant referrals
  • walk-ins
  • phone inquiries
  • networking

Tenant Referrals

Prospecting for tenants can begin with your current tenants. Make sure to get the word out and be creative about it. The most common ways to do this are by:

  • speaking with each of the decision makers in your building
  • sending out letters to the decision makers, as well as the executives of each firm
  • asking for referrals, possibly as a postscript, in any general letters to tenants (for example, boxing it as an ad in the building newsletter)

You can offer a bounty, such as a one-time reduction in rent, or a gift, to anyone who refers a lead for a new tenant that turns into a successful lease. Make sure you do not word the offer so that it becomes a commission, as this could conflict with broker licensing laws, as well as become a problem if an agent represents a referral.

Walk-ins

Walk-ins are like a gift directly from heaven. They show up at your office and want to know about leasing space in the building. This is one of the best—and easiest—ways to lease space, because the prospect comes to you. Nevertheless, working a walk-in is a lot like fishing: it is not hooking the fish that is hard; it is getting the fish into the boat without having it fall off the hook. Try not to let your walk-ins walk away.

When a walk-in happens, and it can happen at any time, you and your office staff must be prepared in the following ways:

  • if space is available, then it should be in good condition and ready for showing
  • the building’s common areas should be clean and presentable
  • have building plans, including graphical floor plans, ready

Since walk-ins can occur at any time, it is important that you carry a pager or cell phone when you are away from the office so your staff can reach you immediately. In the event that you are not available, be sure your staff knows to do the following:

  • get the person’s name, company name, and current location
  • ask for a business card
  • if you are not available, make an appointment for the person to meet with you (this is a good tactic, because even if you cannot make it, you now have an opportunity to call the person back and establish a personal relationship)

Other questions that staff (or you, if you take the call) should ask include:

  • Is the person working with an outside broker?
  • Why is the person looking for space?
  • How much space does the tenant need?
  • When does the tenant need the space?

Make sure to have building brochures available at the receptionist’s desk. Above all, never let anyone quote a rental rate, concessions, or any terms of a lease for a walk-in inquiry.

Phone Inquiries

This type of inquiry occurs more often than the walk-in. Your primary strategy should be to get this person in for a tour of the building.

Three important things to remember when speaking with a new prospect on the phone are:

  • do not be too aggressive
  • listen carefully to what the person tells you
  • be patient

At the beginning of every conversation, make sure to fully introduce yourself and ask for the person’s name and title, or position held in the company. If it sounds like the position may be a lower level job (the person may be just a scout assigned to gather information), find out the name of the boss or whoever makes the decisions.

If the conversation begins with a request for a rental rate quote, do not quote one. Chances are that if you answer the question directly, the caller may thank you and hang up before you know who it is.

How do you avoid committing yourself to quoting a price too early in the conversation? Make it clear that you cannot quote a price until you know the cost of making the deal (for example, how much the tenant improvements or other concessions cost). If he or she is persistent about wanting to know the price, then try this tactic: Tell the prospect you may have a few office suites available and would need to know some additional information before discussing rates, such as:

  • How much space is needed? This helps you learn how big a deal this may become. Obviously, large space needs may cause the ownership to be a little more flexible than in a small deal.
  • What configuration of space is required? This question helps you learn how much work is required to adapt the space to the prospect’s needs.
  • When will it be needed? Now you can figure out space availability due to expiring leases.
  • Why is the person looking for space? This important question helps you learn the motivation behind the call.
  • Where is the person’s present location? This not only reveals the distance, it also indicates whether the tenant is moving upscale or downscale.
  • What is this person’s type of business? Certain uses may not be compatible or desirable. Now is the time to find out.
  • What will the space be used for? Will it be administrative, sales, storage, or some other type of use? Again, certain uses may not be compatible or desirable.
  • When asking questions, be subtle and try not to come off like a cop grilling a suspect. Take it slow and work the key questions into a conversation.

Once you have gotten as much information as you are going to get, all the while expounding on all the building’s amenities and features, ask for an appointment to show it. Be direct. Avoid posing a question like, “Would you like to see the building?” It leaves too much room for a prospect to simply back out. Instead, say something like: “I would like to show you the building. What time would be convenient for you?”

Networking

Would you rather: (a) sit down with a vice president of a company transferring 200 jobs to your city, or (b) tediously search through a Dun & Bradstreet printout and cold-call executives you do not know?

If you chose (a), then you are ready to start networking. One way to get to know the right people is to plug into your community. This is fun work, often involving such activities as playing golf with the right people, moving in the right circles, attending appropriate civic meetings (including planning commissions, zoning boards, and Chamber of Commerce meetings), joining social organizations, and serving on committees of charity organizations. Eventually, you will hear a key piece of gossip, get a tip, or have the inside information on events that impact the leasing market. Also, being seen with the right people cannot hurt your career.

When you attend these functions, introduce yourself to people and ask if they know of anyone who is thinking of making an office move. The effectiveness of this approach is proven by the Midwestern car salesman who increased his business over a number of years into one of the biggest in the region simply by asking everyone he met, “Who do you know who wants to buy a new car?” Follow up on any clue that you pick up, regardless of the vagueness of the lead.

Of course, having this information does not guarantee that you will get a signed lease. But it does give you the chance to be the first to get your foot in the door and a proposal on a desk. It also affords you the chance to cultivate relationships that may provide future business opportunities.

When you do get a prospect by networking, do not forget to thank the source. You may pay a referral fee or, if laws prohibit this kind of activity, then thank that person in some other appropriate way.

Conclusion

Every skilled property manager must work persistently at his or her sales abilities. Finding and selling tenants is hard work that takes time, legwork, and homework. This process can begin with your current tenants as sources of leads. Make sure to get the word out, and be creative about it.

The purpose of all the work that goes into prospecting is to get a potential tenant into the building so you can show off the space. The more you can make the process personal—introducing yourself, establishing relationships, meeting in person, pushing to show the physical space, and so on—the greater your chances of closing on a deal down the road.