From Lead to Lease:
The Industrial Deal Cycle
Emma, the Asset Manager at Gateway Logistics Center, emails Olivia, the Leasing Manager, for an update on upcoming vacancies across the portfolio. She waits for a reply to get insight into this asset and to see if she needs to get involved.
Emma, the Asset Manager at Gateway Logistics Center, receives an alert from VTS that rents on deals they're negotiating are exceeding expiring in-place rents. Emma forwards the notification to Olivia, the Leasing Manager, asking for an update at the next leasing meeting.
Olivia receives the email but needs an analyst to put together a full report. Emma and Olivia are unaware that Gateway Logistics Center has a large tenant, Carbon Dynamix, that's expiring with rents below market.
Olivia receives the email and immediately opens the VTS Business Intelligence dashboard to analyze the portfolio's future lease rolls and associated revenue by building and lease. She quickly discovers that Gateway Logistics Center has a large tenant, Carbon Dynamix, that's expiring with rents below market.
Set Leasing Strategy
Weeks later, Olivia receives the long-awaited analyst report and discovers an expiring lease with Carbon Dynamix — and their rents are below market. She scrambles to pull together all the lease, tenant, and space information she can find from various spreadsheets and binders and by calling colleagues.
From there, Olivia opens the VTS Site Plan for Gateway Logistics Center to review Carbon Dynamix's current lease with any options and rights and other space-specific data. And since Carbon's rent is below market, Olivia checks the central prospect list to see if she can execute a new deal with better terms. She narrows it down to tenants in other locations that have mentioned expanding: Cicero and Phonem Logistics.
While calling around, Olivia also asks her colleagues to share information on prospects to potentially execute a new deal with better terms. From what they share, she finds two potential tenants for this space: Cicero and Phonem Logistics. Before she can reach out, Olivia has to do even more digging to find the right contacts at both companies.
Olivia looks up the tenant profiles for Cicero and Phonem Logistics in the VTS Tenant Relationship Management (TRM) dashboard to understand the existing relationships with each company. She finds that Cicero is a food & beverage tenant, which eliminates them because this space isn't outfitted for cold storage. When Olivia looks up Phonem, she sees a negative sentiment due to clearance height issues in their current space.
Olivia calls Cicero to see if they'd be interested in expanding to Gateway Logistics Center. Unfortunately, they're a food & beverage tenant and the space isn't outfitted for cold storage, so they decline. That leaves Phonem Logistics. When Olivia calls, Phonem is interested, but shares they're having an issue with clearance heights in their current space. According to the torn and crumpled site plan she found, Olivia assures them this won't be an issue at Gateway.
Renewing Carbon Dynamix at a higher rent may be her best option, so Olivia pulls up their tenant profile in the VTS TRM dashboard next. She sees a long history of in-place and expired leases, recent negotiations at a newly built asset in another core market, positive sentiments, and a list of their contacts — all pointing to a long-term relationship. One new comment from a Property Manager says, "Carbon is aware they're paying significantly below market in Gateway Logistics Center. They may be willing to renew at a higher rent."
Validate Leasing Strategy
Weeks later in a leasing meeting, Olivia updates Emma on all the upcoming vacancies across the portfolio. When they get to Gateway Logistics Center, Emma's surprised to learn that this lease with Carbon Dynamix is expiring with rents below market. Both Emma and Olivia are unaware of the long-standing relationship with Carbon and are interested in doing a deal with Phonem Logistics.
Lastly, Olivia reviews a renewal deal the team is working on with Carbon Dynamix in another core market with the VTS Deal Profile. Olivia can use this context on options, rights, and rates to execute the renewal at Gateway Logistics Center as quickly as possible. She's ready to present her plan at the leasing meeting: Use the long-standing relationship with Carbon to renew their lease at better terms.
In order for Olivia to move forward with Phonem Logistics, Emma notifies Carbon Dynamix that their lease won't be renewed. The Carbon team is incredibly frustrated and upset. They had hoped to continue growing their relationship with Emma and the team and had even told a Property Manager they were willing to renegotiate this rent at market level. But the Property Manager didn't have an easy way to share that information with the entire team, so it was forgotten.
At the next day's leasing meeting, Olivia presents her updates and strategy to Emma. Approved! Because Olivia was able to easily find all the needed data and information in VTS beforehand, they spend the rest of the meeting calculating various financial scenarios using VTS Deal Financials to land at ideal terms for Carbon Dynamix.
Olivia kicks off deal negotiations with Phonem Logistics. As they continue, Olivia prints each new set of terms and leaves them on Emma's desk for review. After Emma signs off, she leaves the signed terms on Olivia's desk. Olivia then scans the signed document and emails it back to Phonem. With the weeks of back and forth, she eventually loses track of the different versions.
With the correct contact already identified using the VTS TRM dashboard, Olivia reaches out to Carbon Dynamix to kick off the renewal conversation. They confirm that they're willing to renew at a market-level rent. As her negotiations continue with Carbon, all deal terms are tracked side by side in VTS for easy comparison.
Much later, Olivia receives final lease terms from Phonem Logistics. They're slightly better than Carbon Dynamix's terms, but at the last minute, Olivia had to concede rent because the clearance wasn't as high as she'd promised. Her paper site plan was outdated. Again, Olivia leaves the printed-out terms on Emma's desk to start the deal approval process. However, Emma is away visiting a building in another market. Approvals can't start until she's back in the office. During all this, the Property Management team at Gateway Logistics Center isn't notified about the new tenant.
Olivia receives final deal terms from Carbon Dynamix. She kicks off the approval workflow in VTS, which automatically notifies Emma to approve the lease. She's away visiting a building in another market when the notification pops up on her phone. From the VTS app, Emma reviews the final terms and supporting context, and instantly approves it. Once the lease is executed, the Property Management team for Gateway Logistics Center is alerted to several renewal tasks via the Tenant Coordination dashboard in VTS.
Tenant Moves In
Because Property Management wasn't alerted to the incoming tenant earlier, the move-in project was delayed from the start. Phonem Logistics doesn't move in on time, which adds downtime to the space. Emma and Olivia have to give them a few months’ free rent to make up for the poor experience. Meanwhile, Carbon Dynamix decides not to renew their remaining leases across the portfolio.
Carbon Dynamix happily remains in their space. Emma and Olivia rejoice that they were able to renew at a higher rent and eliminate any downtime from the space. This long-standing partnership is a clear benefit to the business.
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