When you hear the word "leasing," many people may think of cars or copy machines, but the word leasing is also used for real estate rentals.
This time, we will introduce the specific work involved in leasing in the real estate industry and the key points to consider when choosing a company.
The quality of leasing is directly linked to profitability, so it's important to keep it in mind.

What is leasing business?

Leasing in real estate refers to the task of recruiting tenants for rental properties and providing support until they move in.
In particular, in the real estate industry, it often refers to the job of finding tenants for commercial buildings, commercial facilities, and shopping malls.

However, leasing operations do not simply involve processing rental intermediary contracts.
The job involves a wide range of planning and sales activities, from conducting advance marketing research to determine what type of tenants would be effective for rental management, to selecting tenants that fit the concept of the commercial facility and creating a harmonious tenant mix overall, so the knowledge and experience required is diverse.

Difference from property management

Another term that refers to a similar business is property management.
Property management refers to rental property management in general, including tenant recruitment, contract management, daily management of the building, rent collection, and other management tasks during the rental period.

In a broad sense, property management can be understood to include leasing operations.
However, in recent years, real estate management has become more complex and specialized, and it is often the case that leasing management (LM) and property management (PM) are considered separately.

Leasing business details

Leasing operations are divided into three stages: marketing prior to recruiting tenants, recruiting tenants, and contract and occupancy support.
An important point in managing commercial real estate is how to conduct advance marketing research.

Analysis of location and building concept

Even when it comes to commercial real estate, the type of tenants you are looking for will differ depending on whether it is a commercial building in front of a station, a roadside complex, or a large commercial facility in the suburbs.

In addition, a concept is often drawn up at the facility design stage, and tenant recruitment must also be in line with this concept.
In this way, leasing begins with understanding the location and characteristics of the building.

Customer targeting and analysis

Next is to set your customer target. Your customer target is closely related to your location.
If it is a commercial building in a fashionable neighborhood in the city center, they might pick out tenants selling apparel and miscellaneous goods, while if it is a restaurant building with many office workers, they might choose a major izakaya chain restaurant.
We decide on the characteristics of commercial buildings and business facilities while keeping in mind the customers who will use the facilities.

Planning and sales to tenants

After understanding the characteristics of the facility, we approach potential tenants and place advertisements seeking tenants on real estate information sites.
As a tenant, you may also be interested in what other tenants are available.
It is important to avoid customers competing with similar stores, and buildings with tenants that do not fit the company's concept tend to be avoided.
The leasing officer acts as the overall coordinator between the owner and the tenant.

Contract procedures and store opening support

Once a tenant is decided, we will confirm and negotiate the rental terms on behalf of the owner and conclude a lease agreement.
In some cases, they may even provide support up until the store opens, arranging the interior and equipment.

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