It can be challenging to attract and keep the best commercial tenants in today’s market. With so many choices available, businesses are picky about where they decide to set up shop. To compete, landlords and property managers must offer more than just a prime location and favorable lease terms. Here are some tips on attracting and keeping commercial tenants in 2023 and beyond.
Utilize Creative Marketing Techniques
When it comes to marketing your commercial property, you need a plan that will truly make an impression and set your brand apart from the competition. Having a toolkit of creative strategies can help you do more deals and develop recognition for your company name in the marketplace.
CRE Listing Platforms/Digital Advertising
CRE listing platforms and digital advertising can be a great way to buy, sell, and lease commercial real estate. Platforms like Crexi make it easy to list properties online for free with searchable listings and powerful marketing tools. Additionally, social media sites like a Facebook business account may also be used to expand your marketing reach.
Take Perfect Pictures
First impressions are everything, and that includes real estate. Captivate potential tenants with alluring photos to pique their interest in your property. Getting a high-quality camera or hiring a professional photographer are both ways to capture your audience’s attention.
Make Captivating Videos
Tap into your creative side and make an attention-grabbing video of your property. Doing a video tour lets you show off certain angles that may not translate as well over pictures, such as a dazzling lobby. You can also customize your videos to include music or a voiceover to entice clients to check out your building in person.
Another great option is using a drone to take a video of the property and the surrounding area. Utilizing a drone to capture photos allows you to provide an array of perspectives on the property, enabling your clients to visualize their future neighborhood better.
Maximize Efficiency With Technology
You can maximize your listing by using technology to make things more efficient and visible. Technology is a valuable tool for real estate, such as online listings, virtual tours, tenant request monitoring, electronic advertising and more.
Virtual reality (VR) is a 3D computer-generated environment that can be explored and interacted with by a person. VR allows for virtual property tours, so clients can view several options without needing to travel. It also provides the ability to market and pre-lease a property before it’s built. According to BOMA, photos and 2D videos may soon be replaced by virtual and augmented reality.
Signing documents usually takes a lot of time and paper, but now the final paperwork can be signed electronically. With eClosing, all contracts are filled out and signed online, while the closing is made official through a video chat with an online notary. There are two eClosing options: remote online notarization (RON) where you close completely electronically, or hybrid eClosing, where you close digitally for a portion of the closing.
Offer Business Tenants Unique Amenities
Offering unique amenities can help your property stand out and make it more attractive to commercial tenants. Providing quality amenities provides several benefits, such as encouraging employees to return to the office, attracting reputable businesses, and boosting tenant satisfaction. This can help you retain current tenants when lease renewal time comes around.
Give Them a Space They Can’t Refuse
As tenants return to the office, they’ll be spending a large chunk of their day in their space, so providing them with a great location will help you and them. Many businesses are searching for a prime location to impress their clients and reduce employee turnover. Depending on the type of business your tenant is in, you can strategize the best unit for them, such as putting them on a floor with other complimentary businesses or providing a confidential space with less foot traffic, such as with a law office.
Turn a Vacant Unit Into a Shared Amenity
Providing extras for your tenants is a great way to catch their eye and keep their interest. If you have one or a few vacant spaces that just aren’t moving, you could turn them into a conference room, cafeteria, gym, bike storage room, etc. Not only will this encourage your tenants to network with others in the building, but it is something they will keep in the back of their mind when it comes to renewing their lease.
Sponsor Your Tenant’s Housewarming Party
Offering to sponsor your tenant’s housewarming event is a great way to network and show off your skills as a landlord or leasing agent. It gives tenants looking for commercial real estate to lease the opportunity to see how you can help meet their needs, and they can also talk directly with you about what they are looking for. Consider adding a promotional display or raffle or offering branded welcome gifts to stand out.
Tips To Keep Commercial Tenants Satisfied
Your tenants’ satisfaction with your building is one of the most important things to maintain. If they are unhappy with where they work every day, there is a big chance that they will not renew their lease. The good news is there are plenty of ways to keep your tenants happy, and some don’t even include money.
Understand Property Market Trends
The real estate market is constantly adapting, so understanding the market trends will keep your property ahead of the competition. To understand property market trends, you need to know the five factors that determine them: Location, economy, supply and demand, taxation, and legislation. Constantly collecting data on these five categories can provide ample information to make important changes when needed.
Offer Flexible Lease Terms and Conditions
A flexible lease could be a smart decision for both you and your tenants as it provides options for keeping occupancy high and cash flow coming in. Some items to consider being flexible with include expansion for space, relocation within the building, and the move-in/out date. While providing flexibility can set you apart from the competition, make sure that you don’t give too much away and have clear policies written in the lease for protection.
Anticipate Tenant Needs
Tenants expect landlords to anticipate their needs and wants and will recognize it quickly when they do or don’t. While you can’t anticipate every need, you can think about what you would want from a building: security, amenities, and a quick response to maintenance requests and repairs. If you feel you’re missing the mark with your tenants or are looking for new ideas, consider sending out an annual or semi-annual survey for their suggestions and opinions.
Invest in Maintenance and Upgrades
Planning and executing necessary renovations, repairs, and updates can help ensure that the asset remains attractive to potential buyers or renters. Maintaining the building is extremely important to make sure that the building’s mechanical systems are up to date and that all rules and regulations are met. Also, taking care of common areas such as sidewalks and parking areas can help reduce the number of accidents at your property while potentially lowering insurance premiums.
Build Relationships Through Communication
Having great communication with your tenants is extremely important in making them feel welcome and secure in your building. Communication is also necessary if any emergencies need to be addressed immediately, such as a water leak or systems malfunction. Hiring a property management team or investing in a tenant portal where you can be easily contacted at any time are good ways to ensure that requests are always being received and answered.
Attracting and Keeping Commercial Renters in 2023
As we move into 2023, commercial real estate is still in demand for businesses of all sizes. To attract and keep quality renters, property owners or managers must create an attractive environment with a competitive price point while considering the long-term goals of their investments. Customer service should be a top priority, responding quickly to maintenance requests and ensuring that the facility meets safety regulations. With these strategies in place, commercial landlords can ensure they attract and keep good tenants for years to come.