With many cities and urban areas, notably in the UK, with more empty spaces than prospective tenants, landlords are now under extreme pressure to develop more ways to attract new tenants to their commercial property.
4 Ways To Get Commercial Tenants
To simplify the issue, we’ve compiled this list of 4 ways property owners can attract their commercial space to a new potential tenant.
1. Improve the exterior and interior
Most new tenants are genuinely drawn towards more modern and clean-looking buildings, which is why landlords need to focus on the appearance of their commercial property’s interior and exterior.
The exterior of your property is one of the first things your prospective tenants will see: to make the best first impression, landlords should consider hiring a professional gardener or landscaper to improve the outside of their property.
Designing an attractive exterior doesn’t have to break the bank but will involve significant planning and organisation.
You want prospective tenants to feel comfortable and welcome – aim to create an environment in which they can see their business and employees thriving.
Before designing your commercial property, it’s essential to understand what purpose your building will serve to tenants.
Modern buildings, for example, often offer themselves to start-up businesses looking to make a big impression.
Design features such as art, statement walls, living walls and overall interior choices will make a massive difference to your property’s overall appearance and feel. You should ensure they appeal to the kind of tenant you’re hoping to attract: start by choosing the main focus point (something large or significant, such as a mural or statue) and build your ideas around that.
Landlords can save money by buying products in bulk and often get better deals on products such as commercial flooring and furniture if they place a large order.
2. Make your property energy efficient
According to Government figures, there could be up to 285,000 properties in need of urgent work.
By making your property energy efficient, not only is your property more appealing, but you could run the risk of being fined. You can make your property more energy efficient with the following steps:
- Double Glazing – not only will this keep your tenants warm come the colder winter months, but it will also add points to your property’s energy score, pushing into a higher band.
- LED light bulbs are undeniably the more energy-efficient choice when choosing lighting for your commercial property. As well as being the more energy-efficient choice compared to their standard counterpart, they also provide a crisp light, unlike a standard yellow hue bulb.
- Costing around £5 per square metre, insulation is a highly cost-effective way to boost the energy efficiency of your commercial building.
- In some cases, landlords are eligible for tax credits that can help with the costs of improving the energy efficiency of their building. Contacting your local energy company for more information is always a good idea.
3. Understand your target market.
To attract and maintain tenants, it’s essential to understand their wants and needs. This can be done by performing various types of market research and will help you target the improvements according to the feedback you receive.
It’s better to gather this information yourself rather than take it from the internet – the location, size or age of your property can drastically change the demographics of your potential tenants.
For example, if your building is in a more tech-heavy area, you will need to focus on factors such as internet speed.
However, if your market employs a wide range of parents, you must consider on-site or nearby childcare facilities.
4. Build relationships with local businesses.
Build relationships with local businesses or vendors open to offering tenants discounts or other benefits. This can be anything from cafés, taxi companies or gyms – companies your tenants are likely to use repeatedly.
Landlords should consider negotiating discounts with as many vendors as possible: this way, they can devise an impressive list of recommended local amenities to show prospective clients.
Create relationships with local vendors who offer amenities that could benefit to your tenants, such as coffee shops, catering vendors, dry cleaners, or business data specialists, rather than those who provide niche or unnecessary services.
Importance Of Selecting The Right Tenants
Choosing the right tenants for your commercial property is crucial since it can help ensure a steady and reliable rental income. On the other hand, the wrong occupants can lead to property damage, a decline in the property’s value, and financial losses caused by non-paying tenants.
Typically, there can be many reasons why a tenant might fall behind on rent payments, including:
- Financial difficulties
- Disputes with the landlord
- Issues with the building
Plus other relevant reasons to justify withholding rent. However regardless of the senses, non-paying tenants can adversely impact your rental income. Thus, if you’re worried about these unpaid rentals, working with a rent arrears recovery service provider can be an excellent solution for “commercial rent arrears” causing significant cash flow issues.
Additionally, picking the right tenants is crucial in improving your commercial property’s value and attracting new customers. Good tenants can make improvements to the property that will increase its value. For example, they may pay for new signage, landscaping, or security measures.
Lastly, having the right occupants can help attract new customers to the property. This is because they’ll bring in their customers, who they might also refer to your property.
The importance of attracting tenants for commercial properties can’t be overstated. Tenants are the lifeblood of any commercial property, as they provide the revenue necessary to cover ownership costs, such as mortgage payments, property taxes, and maintenance. Without tenants, commercial establishments would quickly become worthless.
Therefore, by keeping these strategies in mind, landlords can attract a wide range of potential tenants, thereby reducing vacancy rates and enhancing their property’s profitability and long-term value.