What is the best re-leasing strategy for industrial assets?
The best re-leasing strategy for an industrial asset starts before the tenant leaves: decide early whether to renew or replace, read the demand for the unit before spending on refurbishment, and approach the businesses it suits directly while the listing runs, so the search is well under way by the handback. Scayled handles the direct approach. For each unit it finds 250 to 350 businesses nearby and across the market whose operation the building suits, names the person who signs, and drafts each approach, as a Full Campaign for US$749 with no commission.
- What decides the return on an industrial re-let?
- When should re-leasing start?
- Should you refurbish, re-spec or subdivide before re-letting?
- Who should you market an industrial unit to?
- How do you run re-leasing alongside the appointed agent?
- What does Scayled cost for a re-let?
What decides the return on an industrial re-let?
Five numbers decide it: months of downtime, the new rent against the old, the incentive given, the letting and legal fees, and any capital spent to make the unit lettable. Downtime usually matters most, because rent and outgoings are lost every month and a long void tends to need a larger incentive to end.
The levers can pull against each other. Holding out for a higher rent can lengthen the void; accepting the first offer can leave rent on the table. Knowing how many businesses the unit suits is what tells an asset manager which way to lean.
When should re-leasing start?
Re-leasing should start as soon as there is a real chance the tenant will go, not at handback. Work back from the option window or notice date, allowing time for the renewal decision, any make good, the new tenant's search and approval, and its fit-out.
Starting early does not mean advertising early. A private, one-to-one approach to businesses the building suits can run while the sitting tenant is still in place, without a listing that would alert the tenant or the market.
Should you refurbish, re-spec or subdivide before re-letting?
Let the demand decide. Before committing capital, look at the businesses the unit actually suits: what size of space they occupy, what they do, and what they would need from the building. If most of them are smaller operators, a subdivision may let faster than holding out for one large tenant. If the strongest candidates need more power or doors, that is the refurbishment to scope.
A Scayled list for the unit gives that picture: 250 to 350 businesses the building works for, ranked by fit, with what each one does. Spending ahead of that evidence is how a refurbished unit ends up sitting empty anyway.
Who should you market an industrial unit to?
Market it through two channels at once. The agent, listing portals and signboard reach businesses already searching. A direct approach reaches businesses that are not searching yet, starting with operators close to the property, because industrial occupiers rarely move far, and widening to businesses across the market whose operation fits.
For the direct channel, each approach should go to the person who signs, usually the owner, director or property lead, from the owner's or agent's own email, and say why this building suits that business. Scayled names that person at each business, checks the contact is deliverable and drafts the message.
How do you run re-leasing alongside the appointed agent?
Give the agent the direct list rather than running a competing effort. A Scayled campaign works alongside an agent: share the list and drafted emails with them, so no business is approached twice by different people.
Agree the exclusions up front, including the sitting tenant and anyone the agent is already speaking to. Check the agency agreement: under many sole agency terms the agent earns a fee on any letting in the period. Scayled takes no commission and nothing it does is public, so it does not conflict with the appointment.
What does Scayled cost for a re-let?
A re-let runs as The Campaign: US$749 for the Full version, ready in about five working days, or from US$449 for a Focused one in about three, paid once either way. The emails are written as the owner, and Scayled can send them from a mailbox on the owner's company email for US$299 more.
Every business and email stays in the owner's Scayled account after the unit lets, so the next re-let in the same area starts from businesses already known. The full sequence is in what goes into a leasing campaign.
Lease The Vacancy In-House, Before You Appoint An Agent.
The Campaign finds the 250 to 350 businesses the building suits, names the person who decides at each and writes every email, ready in about five days. One payment of US$749 per property, no commission and no subscription. A focused 100 to 150 from US$449.