Finding and Keeping Quality Commercial Tenants

5/13/2024 (Permalink)

How to Find Commercial Tenants

Your ability to find quality commercial tenants can greatly impact your success as a commercial property owner. The truth is that commercial landlords and business owners who need office or retail spaces have symbiotic relationships. When everything goes smoothly, your tenants pay rent on time and follow all lease rules while enjoying the square footage they need to run their businesses successfully. However, bringing in the wrong tenants can lead to constant turmoil. What's the secret to finding great tenants for your commercial building? This list outlines the keys to attracting high-quality tenants without letting potential tenant selection take over your life!

1. Create Compelling Online Listings

One of the best ways to ensure that you can find quality tenants is to attract a large selection of tenants. This is done through a compelling, informative listing. Make sure your listing is shared on popular commercial property websites that allow potential tenants to filter searches by location, square footage, price by square footage, and other important details. Examples of these websites include Property Shark and Loopnet. Details to place in your listing include:

1. Accurate information about square footage.
2. Crisp, clear photographs of the full property.
3. Suggestions for businesses that would fit into your commercial space perfectly.
4. Details about neighboring or adjacent businesses.
5. Any special features.

2. Ask for Referrals From Existing Tenants

If you have current commercial tenants, consider mining for referrals. It's common for business owners to be connected with other business owners. Contact your tenants to ask if they know anyone currently looking for a commercial or retail space. Consider offering a referral discount. If you're a first-time commercial property owner, attending local networking events can be a way to gather leads and referrals.

3. Invest in Luxury Signage

A single sign can go a long way in attracting high-quality commercial tenants. If your property is visible from the street, have a large custom sign showcasing the address, building name, and contact information for leasing. Who will want to move their business into space more than someone who drives that route daily?

4. Invest in Landscaping

When renting out a commercial space, how you present your property to the world is how your tenants present their businesses to the world. The best way to attract tenants is to provide them with a high-quality space they proudly call their operational headquarters. An easy way to make a property impressive is through professional landscaping that creates an elegant, elite aesthetic. If this is a newly acquired property, consider bringing in landscapers to help you plan a green scheme that can keep your property looking lush and manicured throughout the seasons.

5. Address Any Red Flags on Your Commercial Property

It's so important to remember that tenants for your commercial property are also screening you and your building during the leasing process. If you want to attract reliable tenants for the long term, providing a safe, attractive setting is critical. Here's a look at the red flags to fix before they cause quality tenants to go elsewhere:

1. Crumbling or broken pavement in parking lots or walkways is unsightly and poses trip-and-fall hazards for tenants, their employees, and their clients.
2. There may be visible mold or water damage inside the property. Before showing it, bring a mold damage company to remediate the issue.
3. Windows and doors that are not secure.
4. Outdated flooring, paint, wallpapers, and fixtures.
5. Clear code violations.
6. Junk, clutter, or items that previous tenants left behind.

6. Modernize Your Internet

While this may seem simple, equipping your building with high-speed Internet and Wi-Fi can be a great way to attract serious businesses to your property. Make this a selling point that is featured in all listings!

7. Offer Leases Options That Grow With a Business

The truth is that it can take time to predict the needs of a business. By offering flexible lease terms that can grow with a tenant's needs, you may be able to build a lasting relationship with a high-quality tenant on the rise! Unlike residential leases that are generally 12 months long, commercial leases can last anywhere from six months to five years. Some tenants may appreciate shorter leases that allow them to launch a new location. More established businesses may prefer the cost savings of locking in a long-term rental for a discount. You may attract a wide range of tenants by advertising that you're open to flexible leases.

8. Prioritize Tenant Retention

One way to ensure that you always have reliable tenants is to do everything possible to keep them paying their rent on time every month. Consider launching a retention initiative to please current tenants while showcasing your commitment to providing a quality space to future tenants. Some ideas include:

1. Conduct an annual survey of tenant satisfaction. If there are any noticeable trends in dissatisfaction, address complaints.
2. Offer competitive rates or rate lock-in offers for lease renewals.
3. Host "tenant appreciation" events, including catered lunches, food trucks, gift cards, and other fun perks.
4. Keep the property beautifully maintained.

9. Hire a Commercial Real Estate Broker

If you're overwhelmed by filling your commercial vacancies, you can hire a commercial real estate broker to help you find quality commercial tenants. Commercial real estate brokers are experts in showcasing properties, managing listings, interviewing potential tenants, conducting background checks, and getting lease agreements signed. By freeing up your mental and physical energy, you'll have more time to work on keeping your commercial property maintained instead of shuffling through lease applications.

It All Starts With a Quality Property

Ultimately, you won't find quality commercial tenants if tenants don't find quality when they tour your property. How confident are you that your commercial investment property is safe and attractive enough to begin welcoming new tenants? Remember that damage from flooding, storms, aging, and wear and tear can cause aesthetic, safety, health, and legal issues for a commercial landlord if issues are ignored. Don't wait for tenants to be angry! Get your property ready with residential restoration services in Arcadia, California.