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Smarter Leasing Strategies in a Shifting Market: What Landlords Need to Know

Category Editorial

The commercial property market is changing. Tenants are more selective. Space requirements are shrinking. Lease terms are under pressure. As a landlord, your leasing strategy must adjust to these changes if you want to protect value and reduce vacancy.

Here's a practical approach to leasing in the current environment:

1. Understand What Tenants Really Need

Most businesses today want flexible, cost-effective space. They're reviewing their leases more carefully than before. They ask questions about total occupancy costs, building performance, and lease flexibility.

What you can do:

  • Offer terms that allow some level of flexibility (e.g. break options).

  • Provide clear information on operating costs and how they are managed.

  • Make it easy for a tenant to imagine operating in your space.

When you know what matters most to your target tenants, you can present your property more effectively.

2. Adjust Lease Structures to Match Market Conditions

Long, rigid leases with steep escalations are no longer the default. Tenants want shorter terms, predictable increases, and options that reduce future risk.

What you can offer:

  • Scalable lease periods with renewal or expansion options.

  • Reasonable escalation clauses that match inflation or market trends.

  • Reduced upfront costs through shared fit-out or rent-free periods.

Work with your property advisor to structure terms that are commercially sound but market-friendly.

3. Respond Faster to Leasing Enquiries

Speed matters. If a prospect enquires and you delay, you'll lose them to a landlord who's more responsive.

What to focus on:

  • Keep your marketing material up to date and easy to share.

  • Ensure your letting agent has all current floorplans, pricing, and availability on hand.

  • Set internal timeframes for responding to every enquiry within 24 hours.

A fast, informed response improves your chances of closing the deal.

4. Present Space That's Ready to Occupy

Many tenants don't want to manage a fit-out project. They prefer turnkey or semi-fitted space they can move into quickly.

What you can do:

  • Prepare a unit in advance with a neutral fit-out, or leave allowance for tenant input.

  • Offer fit-out support or capital contributions where possible.

  • Keep common areas and building infrastructure well maintained and visible during viewings.

Properties that are "move-in ready" often lease faster and at better rates.

5. Make Data Your Advantage

Track key lease data across your portfolio. Use this to make better leasing decisions and reduce vacancies.

Capture data such as:

  • Current lease expiries and notice periods.

  • Average leasing time per property.

  • Incentives offered and accepted.

  • Retention rates of renewing tenants.

Use this data to identify trends and fine-tune your leasing strategy.

6. Work With a Broker Who Thinks Beyond the Deal

You need a broker who understands tenant behaviour, not just how to fill space. They should bring real market insight, handle negotiation strategy, and manage the process with urgency.

Make sure they can:

  • Provide current market benchmarks.

  • Position your space to the right tenant segments.

  • Drive proactive engagement and follow-up.

Choose a partner who views leasing as a strategic process, not just a transaction.

7. Review Your Leasing Strategy Every 6-12 Months

The market doesn't stand still. Neither should your leasing approach. Set a regular review process where you:

  • Reassess target sectors.

  • Check the competitiveness of your incentives.

  • Evaluate agent performance and marketing exposure.

  • Revisit building readiness and tenant feedback.

If a space is not leasing, find out why and act on it quickly.

Let's Talk About Your Portfolio

At Spire, we work closely with landlords to build market-ready leasing strategies. We help you position your properties correctly, connect with the right tenants, and negotiate terms that make sense.

If you're looking to reduce vacancy, attract better tenants, or improve lease outcomes across your portfolio, let's discuss your strategy.

SPIRE PROPERTY BROKING SERVICES

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Author: Spire Property Solutions

Submitted 13 May 25 / Views 21