Commercial Property

As an owner of a commercial property, you know how important it is to find and keep good tenants.  Quality tenants can help you generate steady income, maintain your property value, and avoid vacancies and turnover costs.

Reoccurring lease payments represent the lifeblood of your property.  But how do you attract and retain good tenants?  Here are some tips to help you succeed in the competitive commercial real estate market.

Know Your Target Market.

Distinct types of commercial properties appeal to various kinds of tenants.  For example, if you own an office building, you may typically target professional services firms, such as lawyers, accountants, or consultants.  For a retail space, you would target businesses that sell products or services that are in high demand in your area, such as restaurants, clothing stores, or salons.  To know your target market, you need to do some research on the demographics, preferences, and needs of your potential tenants.

Your target market understanding should reflect the various lease rate segments within your geography.  Some tenants can and will pay top dollar for the ‘best’ space in town.  Other tenants have more modest means and require more economical lease rates.  What type of tenant can your property attract?

You can also look at the current trends and developments in your industry and location.  Ask yourself, what local businesses are busy and may need to grow their leased footprint?  What multi-location businesses might be looking to expand into your area?

Improve Your Property’s Curb Appeal.

The first impression is crucial when it comes to attracting tenants.  You want your property to look attractive, clean, and well-maintained from the outside.  This means that you should invest in landscaping, painting, lighting, signage, and other exterior improvements that can enhance your property’s appearance and visibility.  You can also hire a professional photographer to take high-quality photos of your property that you can use for marketing purposes.

Offer Competitive Rates And Incentives.

One of the main factors that tenants consider when choosing a commercial property is the rent amount.

You need to set a rent that is fair and reasonable for your property’s size, location, condition, and amenities.  You should do research to be aware of the market rates and the rents of your local competitors.  You do not want to overprice or underprice your property, as both can hurt your profitability and reputation.

You can also offer incentives to attract and retain tenants, such as free parking, flexible lease terms, rent discounts, or tenant improvement allowances.  However, you ought to always model the effect of such incentives on your overall rate of return..

Provide Excellent Customer Support.

Another key factor that tenants look for in a commercial property is the quality of customer service.  You want to build a positive and long-lasting relationship with your tenants.  If you (the owner) do not want to be “hands on” with your tenants, you need to arrange a landlord representative (property manager) that is responsive, courteous, and professional.  Your representative should communicate with them regularly and address any issues or concerns they may have promptly and effectively.  Consider showing appreciation for their business by sending them thank-you notes, gifts, or invitations to events.  By providing excellent customer service, you can increase tenant satisfaction and loyalty.

Upgrade Your Property’s Amenities And Features.

To stay competitive in the commercial real estate market, you need to keep up with the changing needs and expectations of your tenants.  It might be time to consider upgrading your property’s amenities and features to make it more comfortable, functional, and appealing for your tenants.  For example, you can install high-speed internet access, repaint parking lot lines, add security systems, upgrade to energy-efficient lighting, or refresh the current landscaping or signage.

Of course, you should make your upgrade decisions with an understanding of your property’s position within the competitive target market.

By following these tips, you can attract and retain quality tenants for your commercial property and enjoy the benefits of a successful commercial real estate investment.

 “Sundance property management is accomplished within Sundance Realty & Management Inc.  Sundance is licensed by the Real Estate Council of Alberta (RECA), as an independent, regulated, real estate brokerage.  Sundance Property Management is focused on delivering value to its property owner customers through the key values of quality facility management, quality tenant relationships, and quality owner reporting that emphasizes transparency and completeness.  Sundance property management is growing, and currently manages dozens of commercial properties representing over 650,000 square feet of Industrial, mixed-use, retail, warehouse, and office real estate properties.”