Learn Commercial Real Estate
Tenants can be unprepared, anxious and overwhelmed. Some may spend time dwaddling in the deal. Many Tenants will ask to see spaces with prices out of their Budget. Some will stop answering the phone. How do you guide your client to avoid wasting time?This month we are focusing on Restaurants/ Cafe/ Bars
Commercial Professionals uses a lot of abbreviations and acronyms.
For example Commercial Real Estate = CRE
So our topic of Restaurants/ Cafe/ Bars = RCB
RCB Spaces = Restaurant/ Cafes / Bars
Last week we learned the right questions to ask in getting you started in finding a great business space for your client.
That email from last week will be at the bottom of this one.
We also made a great RCB questions cheat sheet for you to keep handy.
Small things that make a big difference
Unlike residential real estate qualifying a new client can be difficult and frustrating. Commercial Leasing agents, especially the new ones.... sometimes will waste lots of time on clients who have not a wing or a prayer to get an actual business space.
How can you tell who is a legit client? Who really is able to meet the requirements to Lease a business space ? What can you do to not waste your time?
Even those clients who already have a RCB ( Restaurant/ Cafe /Bar) spaces can be unreliable.
By asking the right questions and watching out for red flags, you will be able to determine who is a real client.
Not many people like their time being wasted.
Wealth Builders sure don't.
There are lots of ways you can see the red flags of time wasters.
Can you share one experience where your time was wasted, and how you identified what was happening?
I am interested in hearing the story, hit reply and share with me.
Many of the clues that the deal is going nowhere come with time and experience in doing lots of deals ,and having deals not work out.
And being ghosted.
I am here to save you time and energy.
Here are a few ways you can " Pre - Qualify" your clients:
Ask for their business plan. - Landlords will want to see a business plan.
Ask for their marketing plan - Landlord will want to know how their building space is being marketed to be used for and other reasons.
Ask if they have any money saved for this business venture - Opening a business takes money. If they have nothing saved, but meet the other requirements, provide them with the information they need in order to be ready to lease the space. This may be a future client. - Landlords will want to see Financials.
Next week's email will cover the financials your client should be prepared to show.
There may be times when they have "investors"- ask where that money is coming from.
Are the familiar with the permitting process through the local permitting department? Have they spoken to anyone there?
Do they have or can they get a liquor license ?
If these items aren't met in a major way- this may not be their time to make a deal.
But you also didn't waste your time.
You have also positioned yourself as someone who knows the right questions to ask, and the right signs to look out for!
POV = Point of View
Tenants can be unprepared, anxious and overwhelmed. Some may spend time dwaddling in the deal. Many Tenants will ask to see spaces with prices out of their Budget. Some will stop answering the phone. How do you guide your client to avoid wasting time?
Here are those same questions, but with a different point of view.
Ask for their business plan. - Is it a small business that has been operating without a formal plan, but they are still making a profit?
Ask them to prepare a business plan for you to show to a Landlord when you find your space. Ask them to work on one. If they are serious they will create a business plan.
Ask for their marketing plan - No marketing plan? Ask them how they plan to attract clients and keep clients. Do they already have a large following?
Example: A juice bar kiosk wanting a brick and mortar. A food delivery chef working from home,a ghost kitchen, or food truck. A pop up chef with a large following- making money, but nothing on paper. Each of these cases are different. If this is your experience connect with me for ways to assist your client in getting a marketing and business plan together.
Ask if they have any money saved for this business venture - They may be getting funded from a relative. etc
I am going to be honest with you. When I first began in this business, asking questions to people about their business seemed wrong and weird to me. I hated it!
Growing up I was told not to ask questions and mind my business. If you ever feel like that, just know you are not alone. If you want to be successful in this business , you'll have to do what I did.
I changed my point of view. I begin to think" If I don't ask the right questions, I won't be able to add value or assist these clients.
I will also be wasting my time and theirs"
So in this business - Be nosy. Ask the right questions that matter and create engagement.
What Remains the Same
Due Dilligence is the engine of the commercial real estate industry.
Being Kind and realizing this is a small world. Everyone has a dream. Don't be a dream crusher
Proverb: If you walk by a puddle don't muddy it. You never know when you will walk that way again and be thirsty. - Izzy Gomez
You never know who will be who, in the future. Who will be where or who will own what. Commercial Real Estate is a long journey.
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