Find Long-Term Tenants For Your Commercial Properties
Leasing Commercial Real Estate comes with risk. You need to find long-term tenants that are beneficial for both parties. The more properties you have leased, the larger your profit margin is. Because of this, it’s important to keep tenant turnover low. When your tenant’s business is successful, you’re successful.
How do you find the perfect tenant to fill your properties? While there is no perfect formula, there are a couple things to consider when seeking out the perfect tenant. And it’s probably not what you think.
Finding the Perfect Tenant
- Know the market– Don’t rely on your tenants to understand the local market. You should have a good head on what current market trends look like in your area already. Being able to spot a new business that fits in the upswing of the market means they’ll stick around longer than business ventures that are becoming less profitable.
- Know the bigger picture – Aside from the market, if you are managing a larger strip mall, office building or complex it’s important to remember the diversity of your tenants. Trying to lease to several, similar niche businesses in the same area doesn’t help you or your tenants. They shouldn’t be competing with one another. Instead, neighboring businesses should be supporting each other and drawing a variety of foot-traffic together. Think about what types of business can help fulfill the need of the whole complex instead of just trying to lease a space for the sake of leasing.
- Know your Tenants – Or more, know your potential tenants. It’s likely that every tenant you have is a little different. Some require more parking, others will require longer-term parking, some need wi-fi, or they want specific signage. Be aware that tenant needs are not across the board, and only you can decide what makes you comfortable to do business with them.
“It gets back to remembering who your customer is. To us, a tenant is a customer. Too many other property management firms, the tenant is simply a debtor,” says Larry R. Baumgardner, CCIM.
Finding the perfect tenant comes down to understanding the local market, your needs, and your potential tenant’s needs. Trying to cut someone out of the equation or simply fill your leases in the hope of turning a quick profit will lead to turnover and unhappy clients! If you need more information about any of the properties we represent or need our services, please give us a call or send an email and someone will contact you as soon as possible.