For commercial property owners and landlords, the word “vacancy” can be troubling. A commercial property without a tenant is a costly unused asset. Even a property owner with multiple tenants can feel the weight of just one empty suite. And over time, the financial strain compounds with each expiring lease.
Filling a commercial property often takes longer than finding tenants for residential real estate. Businesses take time to plan and organize a move before they pack up their headquarters and readjust their employees’ commutes. So for a commercial landlord, finding a tenant can require patience. But the process is worth the wait in the long run, offering a significant payoff to the landlord and a positive business relationship for years to come.
How does a commercial landlord find a tenant to fill their vacant space? Here are a few methods for finding the right tenant for a commercial property:
Networking
Networking is a basic aspect of business that can affect multiple areas of a company—even in the vein of commercial real estate. The business relationships that a landlord or property owner makes have the potential to provide positive word-of-mouth (WOM) to prospective tenants. In some cases, the right contact could help find and fill a vacancy.
Provide an Attractive Property
Sometimes, it’s less about searching for a tenant and more about making a facility more attractive to prospective tenants. Tenants may already be looking for space in a specific market, and they might choose the facility that outweighs the rest. Landlords should ask themselves these questions:
- Does my facility offer amenities that are comparable to other facilities in my market?
- Is my facility layout conducive to the needs of the type of tenant I’m looking for?
- What unique factor sets my property apart from the competition?
Landlords or property owners should take the time to do some research and find out what amenities are common in their market. Break-rooms, on-site coffee shops, or even walls with windows that offer natural daylight are just some of the amenities tenants might be looking for. Landlords may even want to review other, similar local buildings and imagine each property from the perspective of a prospective tenant.
Marketing
In order for tenants to find a commercial property, they need to know it is available. Marketing a commercial property sounds like an obvious step, but landlords and property owners don’t always have the time to showcase their properties. Scheduling professional photographers or videographers, creating or commissioning flyers, and listing the property online all take time and resources. If marketing real estate is not already something the landlord is familiar with, many of the details will get lost in the shuffle. Professional advisors are best suited to appropriately market a commercial property.
Hire a Commercial Real Estate Advisor
Commercial advisors are familiar with finding commercial tenants. Experienced advisors have learned what details they need to research and what qualities are important per commercial sector and market. They can save landlords and property owners precious time and resources because they create a plan-of-action based on their wealth of knowledge and experience. Advisors can also make valuable suggestions all the way through the final leasing negotiations and continue to partner with clients through the renewal process.
Commercial advisors that handle specific sectors are even more valuable for property owners in niche sectors. HBRE advisors, for example, handle the niche medical real estate sector. This sector has laws and guidelines, such as Stark Law, that are unique to health systems and physicians. A commercial advisor who is skilled in other sectors of commercial real estate may not be as qualified to answer medical sector-specific questions.
No matter the type of commercial property, vacancies don’t have to last forever. Even during an economic downturn, it’s possible to start the property search or lease negotiations for prospective tenants. Businesses need space to run and grow. They are looking for the right facility, just as a landlord or property owner is seeking the right tenant.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
