Five crucial tips to finding commercial property tenants
A commercial space often takes a little longer to fill up than a residential property because business moves don't happen very often. Currently, the commercial real estate market may not be at its best. Demand may be low, but that will only open up a lot of opportunities for the market going forward. Nevertheless, there are five fundamental steps you can take to set yourself apart from your competitors.
Learn the tenant mentality
Depending on the local culture, the mentality of potential clients may differ significantly. Certain facilities may seem like a luxury in one locality while in other places, they might be seen as basic amenities. If you fail to understand the tenant's mentality, you might leave them dissatisfied. You might also over satisfy them and miss a fair compensation for your offerings. Learning the mindset of your prospects takes a little bit of effort. This means exploring similar properties in the neighbourhood and the type of tenants occupying them. A survey will go a long way in discerning their frame of mind as well as their pain points. You will be able to determine whether or not they are content with their current working spaces and what improvements they need.
Make the space more appealing
Once you capture the tenant mentality, ask yourself whether your commercial property is suitable for modern business operations. Make the necessary upgrades to make it more attractive to your most preferred tenants.
Various amenities are extremely useful in today’s commercial environments:
1. Security
Even though tenants are responsible for the security of their offices, it is important to secure the entire building properly. Consider adding CCTV cameras at the gates and other security systems. Depending on the layout and size, you should also hire security guards.
2. Strong internet connections
Inbuilt Ethernet cabling and Wi-Fi networks for common areas are quintessential for tenants seeking functional and trendy offices.
3. Space design
Tenants want to know if their customers will be happy visiting the premises. Both the interior and exterior design matter a lot. Some merchandisers prefer more natural light and vibrant wall colours. All you need to do is know the target market and design a space they would fall in love with.
4. Improved parking lot
Office space and parking space are equally important. A spacious parking lot enhances the curb appeal, particularly when bedecked with parking lines and enough barriers.
5. Energy efficiency
Commercial premises consume a great deal of energy during working hours. Apart from the heating and cooling systems, specialised machines demand constant electric power.
Every tenant looks forward to setting up their venture in an energy-efficient space to reduce overheads. This is especially true in London where rent is relatively high.
Before letting your building, make sure you have acquired a Commercial EPC or Energy Performance Certificate to show potential clients. They will like your property if everything works efficiently. Go the extra mile by improving the insulation and installing LED bulbs. These should lower power bills by a significant margin.
Work with professional brokers
Just as you rely on real estate agents to sell land, you can also use commercial agents to rent out your commercial property. Experienced agents are aggressive and have good marketing skills.
There are many agents dedicated to leasing and selling industrial real estate, retail, and offices. They could be from a real estate company that’s expanding in your location, which should give you a broader reach.
Professional agents are in direct contact with businessmen, property managers, and landlords; hence they understand the prevailing market dynamics. They are the best resources for finding out which businesses are relocating soon. The best thing about agents is that you don’t pay the entire fee until you get a fully-executed lease.
Market the space online
Perhaps you are planning for an upcoming vacancy and want to see the current market rates. Listing your space online gives you a broader perspective of the industry. Online platforms allow tenants to search commercial spaces by location, square footage, and type, e.g., retail stores, and office. So, when listing a building, give as many details as possible to reach only the targeted audience. One of the benefits of marketing a space online is that it allows you to find real estate agents specialising in your geographical region. These professionals have been in contact with tenants who might find your offer more attractive.
Adjust the lease conditions
The conditions attached to a commercial lease agreement can entice or repulse tenants. Many start-ups don’t like long leases.
If you can include a lease break, for instance, you would give the much-needed peace of mind to the occupiers. Tenants also desire some flexibility like terminating the rental contract earlier than usual.
Such an approach can help you attract more occupants to your premises. A lease break would work well for those who operate seasonal trading.
Contact NFC Homes
You can find out more about commercial property development and selling land by calling us or filling in our online contact form. NFC Homes are one of the leading UK providers of land valuation, selling land, and property development.