Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties

Definition of Marketing, Leasing, and Management

What do I mean by “marketing, leasing, and management”? My definition of marketing is a broad one, including both the process to attract new tenants through promotion of the project as well as that of encouraging patrons to buy goods or services from existing tenants, thereby stimulating their business and making the overall project more viable. Leasing refers to the steps that must be taken that culminate in signing a contractual agreement with a potential tenant, existing or new, wherein the tenant gains the right to use and enjoy the subject premises in return for paying rent. In other words, leasing means filling vacancies with new tenants or renewing existing lease obligations. Management is the day-to-day running of a property: everything from fixing the toilet to painting the exterior of the structure to addressing tenant complaints or concerns, and monitoring the tenants' timely payment of rent.

Why are these three subjects intertwined? Effective marketing leads to increased leasing, but also should lead to consummating renewals and, hopefully, to tenant referrals that fill vacancies. A good leasing and management team reduces the need for marketing. A key element in marketing should be to show that a great property management team is in place. The objective is to communicate that the subject project is a good environment from which to run a business, since in addition to its attractive location and other benefits, there ...