Commercial properties can be profitable long as there are tenants. Whether you have an office space or a shopping center, you can’t survive without them. Unfortunately, one of the common challenges faced by property investors is attracting commercial tenants. This is because commercial tenants have a specific set of needs that are different from those of residential tenants.
So, what are tenants looking for in a commercial lease? Here are ten clever ways to attract commercial real estate tenants and make sure that they stay.
#1 Offer them an irresistible location
Location is one of the primary concerns of commercial tenants. Naturally, they need a space where they can be seen by customers. They also need a space where they can actually sell. Not only does your commercial property need to be in a prime location, but their space within the property should also be strategic. Maybe this resource will help you to pick the ideal location for your investment property.
Show prospective tenants that their space will be beside stores that will complement their type of business. For example, you could put their popcorn stand next to the movie theater, or you could put their shoe store next to a cluster of clothing stores. Once you assure your prospective tenant that they’ll be placed in a strategic location, they’ll be more likely to sign the lease.
#2 Secure the premises
Security is of prime importance to many commercial tenants. Hence, you should consider investing in security cameras, security guards, card access, and so on. Doing this provides peace of mind to your tenants, especially to those who work round the clock. For example, if your office building has tenants that work “odd hours”, you should consider hiring additional security.
Similarly, your property management company should be proactive when it comes to addressing security concerns. Since there are 50,000 shoplifting incidents per hour, you shouldn’t be lenient.
#3 Offer building-wide Wi-Fi
There’s one thing that tenants can’t live without and that’s Wi-Fi. To attract tenants to your commercial space, you should provide them with high-speed internet that can support their day-to-day demands. Ideally, you should subscribe to a business broadband connection, as this comes with 24/7 support and customer service. In case the connection goes down in the middle of the night, your tenants won’t have to wait until the morning to get it fixed.
In addition, you should consider setting up a separate Wi-Fi for guests. Offer it for free to have more foot traffic at your commercial property. Your tenants’ Wi-Fi should be secure, as they’ll probably use it for business purposes.
#4 Provide shared amenities
Are there spaces in your commercial property that you aren’t renting out? Consider turning them into shared spaces, such as conference rooms, cafeterias, and so on. If most of your tenants (or your tenants’ employees) have children, you could turn your office building’s basement into a daycare center. To properly renovate the basement check out our budget friendly basement remodeling guide.
If you decide to provide on-site dining, be sure to offer your tenants plenty of options. You can tailor your menu according to the types of tenants that you have. For instance, if your entire office building is being rented by a call center, you should provide options for coffee.
#5 Provide parking
If possible, provide your commercial property tenants with parking spaces. While it’s impossible to provide each tenant with a parking space, you should at least provide easy access to parking. This is especially true if your property is in a highly-populated area. Not only will this attract tenants, but it will also encourage customers to come to your multi-unit commercial property.
You should also consider partnering up with parking vendors. Be sure to select parking spots that are in well-lit areas if your tenants tend to work after-hours.
#6 Offer referral rewards
Word-of-mouth is still one of the most effective marketing strategies. Encourage your existing tenants to refer you to their friends. In return for their successful referral, they’ll receive rewards such as rent discounts, restaurant perks, and so on.
This, of course, only works when your tenants are satisfied with your services. So, before doing this step, you better start by performing a tenant satisfaction survey.
#7 Survey your tenants
Are your tenants satisfied by your services? By conducting a tenant satisfaction survey, you can confirm if your commercial property management is a success. This is because there’s no one better to tell you how you’re doing than your tenants. This way, you can improve your services and increase your chances of having long-term commercial tenants.
#8 Enhance the interior and exterior
Impress your prospective tenants by improving the exterior of your commercial property. This can be as simple as repainting the walls or adding a water fixture. If your commercial property doesn’t have landscaping at all, adding low-maintenance plants can be an excellent way to make it look more lively.
Similarly, you should add indoor plans to lobbies to create a calmer environment for tenants and customers. You could also add the artwork to the walls as this makes the space seem less “clinical”. If you want to save as much money as possible, work with contractors that your property management company has selected. Since they’ve been working with your property managers for a long time, they’re more likely to offer their services at lower rates.
#9 Be searchable
You shouldn’t rely on putting up a “Commercial Space for Rent” sign outside of your property. If you truly want to attract tenants, you need to be “searchable”. When you list your commercial space online, be sure to include the necessary information such as the square footage and rental rate. Don’t forget to add your contact information so that tenants can call you to learn more.
#10 Hire a property management company
Commercial property management can be time-consuming and confusing, considering the number of tenants you have to handle. Even after you attract tenants, the tasks don’t stop. You still have to collect rent, schedule repairs, handle disputes, and so on. Fortunately, by hiring a property management company, you can trust professionals to handle these for you.
At Luxury Property Care, our property managers are ready to leverage their experience to ensure that your commercial property attracts — and retains — tenants.