As the market leader in Las Vegas Commercial Property Management and Brokerage, we are committed to not just meeting, but to surpassing the expectations of our clients. One of the contributing factors to that success is transparency.
We believe in being open and honest with our clients and will never play the stereotypical “broker game”—for example, telling you we have hidden buyers then having you drop the price later. To that end, we have compiled a list of our clients’ commonly asked questions and will publish the answers as a series of blogs.
In this blog, we will answer the commonly asked question: How Long Will it Take to Lease My Property in the Las Vegas Market?
If I Had a Gun to My Head, I Would Say…
Just like selling a property, leasing timelines can vary due to a multitude of factors. While every landlord wants to know how long it will take to find tenants for their vacant space, there is never a simple answer. Understanding the factors the landlord and broker can influence, and those they can’t is helpful. Let’s get into what influences these timelines and what you can expect when leasing your commercial space.
Factors Affecting Leasing Timelines Out of Your Control
Similar to selling a commercial property, leasing commercial real estate is subject to various influences like market conditions, economic trends, the location of your property and tenant demand for specific property types.
Four Key Factors in Your Control
- Securing an Experienced Broker: One of the first steps in leasing a commercial property is partnering with an experienced broker that understands the nuances of the market and is active with the type of property you have. You want someone who is an expert, advocates for your interests and will tell you what you need to hear, not want you want to hear.
- Positioning Strategy: Positioning entails understanding the available spaces in comparable buildings that you are competing against. One of our “tricks of the trade” is to take the point of view of the ideal prospective tenant for your space. When that prospect or their agent are searching for space, what else are they looking at and how does it compare to your space? This includes many factors like as-built condition of the space, lease structure (NNN, MG, etc.), tenant incentives, tenant mix, etc. etc. etc.
- Pricing Strategy: Once we understand the competing spaces in a competitive set, then we take a hard look at pricing. Simply advertising the lowest asking rents usually is not the best answer and can have unintended consequences. Signaling to the market that you are “cheap” can deter quality tenants. Also, renting your vacant suites for too little can actually reduce the overall value of your property. We work with our clients to develop the best strategies based on their overall objectives.
- Be Responsive and Ready to Lease: We can’t overstate this enough. As the Landlord, your responsiveness and readiness to lease can significantly impact the leasing timeline. This involves being quick to respond to proposals, being prepared to engage in negotiations and being ready to make quick decisions when offers come in. Indecisiveness or delays in approvals can deter tenants who may have multiple options in the competitive market. The ability to act decisively, offer reasonable and rapid concessions, and finalize negotiations can be the difference between winning deals or the property remaining vacant.
Phases of Lease Up
There are many phases to the leasing of commercial real estate. Below is a list of the phases and typical or average timeframes for each:
- Listing the Property: up to 2 weeks
- Marketing Penetration: up to 30-45 days
- Fielding Inquiries: up to 30-60 days
- Facilitating Tours/Showings: up to 30-60 days
- Letters of Intent (LOI)/Proposals: up to 14-45 days
- Negotiation of LOIs: up to 5-30 days
- Negotiation of Lease Agreements: up to 14-30 days
- Security Deposit & Certificate of Insurance: up to 1 week
Average Time Estimates
Start to finish, leasing commercial real estate vacancies could take as little as 30 days if the space position and pricing are aligned with good demand from prospective tenants. When you consider marketing time and the normal/average amount of time it takes to complete each step, it could take 6-9 months to secure tenants.
The bottom line: we will consider the current market, your leasing objectives and a host of other factors to determine the right price and give you a time estimate to lease your asset. But there are no guarantees on time—the only guarantee is that we will do everything in our control to meet your objectives.
Overall, the commercial real estate market is highly localized, and leasing times are influenced significantly by economic conditions. While effective marketing, competitive pricing, and property improvements can also help reduce vacancy periods, consulting a local commercial real estate broker will provide the most accurate and relevant information for your property and your objectives.
For more answers to your commercial real estate questions, check back to the MDL Group Learning Center for the next blog in our series of “Answering Our Brokerage Clients’ Most Commonly Asked Questions” – How are you going to market my property?
