Commercial real estate can be a smart investment… If you can keep vacancy rates low. This article will teach you seven strategies to attract and maintain ideal tenants.
Tenants priorities can vary according to location, business and building type. Understanding these priorities and offering the right amenities and incentives can provide building owners a competitive advantage.
1. Market Research
Tailoring your tenancy offering to a particular demographic can fast track the process of signing on a high quality tenant. Fit your tenancy to the market. Key information to arm your marketing agent with;
Net Lettable Area
Building Features
Local Features
Current approved use lodged with council
Tenant demographic (offices, warehouse, medical, retail?)
Competitors – what lease terms are they offering, along with facilities?
2. Local features
What is the building’s proximity to public transport, cafes, other complimentary services? If parking is not available onsite, is there a facility near by you can negotiate special rates with for your tenants, or include access to parking as part of the lease?
3. Building Amenities
Breakout or tea area, passenger lift, accessible toilets, end of trip facilities, secure bike parking, car parking, and exercise facilities all important considerations for potential tenants.
4. Building Services & Energy efficiency
Are the current services such as air conditioning, NBN , fire safety or security features adequate and in good working order? Do the amenities have energy and water efficient fittings or other cost saving features your clients would benefit from?
5. Improvements
Are parts of your building looking tired?
Improvements like floor, wall or window coverings are an easy way to update a space. Low cost makeovers might also include painting a façade, upgrading the lobby or signage for street appeal.
When looking at tenancy fitouts, the key is to include elements that target the demographic clientele while maintaining versatility to suit different types of businesses. If your tenancy is in a medical center, you might offer a space that has a reception area, several consulting rooms, with access to plumbing and good acoustics.
6. Getting prospective tenants over the line
Some prospective tenants might have a hard time picturing how they would fit in to a space. If you want to get them over the line, have a test fit done by a Designer to illustrate how the space can cater for their specific needs. Quick 3D artist impressions can be done in a day for minimal outlay that will wow prospective lessees. Get a quick quote for an artist impression now.
If you have a large tenant that has just moved out, consider sub dividing the tenancy in to smaller units, fit them out as a turn key solution for small business operators. This could widen your outreach, giving you an advantage in the market. See above Dexus Bespoke Turnkey Fitouts.
7. Incentives
In my experience successful lessors that claim high rent and loyal tenants also provide contributions to new or renewing tenants. Consider contributing to fitout costs or upgrades proposed by the tenant or agree to a rent-free period. Incentives are a vital tool for landlords to adapt to changing market conditions and secure tenants when vacancy rates are high.