There are always a lot of factors to consider when you manage commercial real estate. Are you charging the best rate? Can you manage all your upcoming maintenance? How much additional professional help do you need?
But having all the right pieces in place means nothing if you can’t find the right commercial tenants who value the space and can cover the terms of their lease. The right tenants are worth their weight in gold. Ideally, they pay on time, help you take care of the property, and stay for years, reducing the rate of (and all the work behind!) tenant turnover.
If that sounds like a dream come true, we can help. Let’s move your property management goals from dreams to reality. Here are our tips for how to find the best tenants for your commercial real estate space.
Understand Local Businesses
You may think your space is perfect for high-tech manufacturing. But if there are no high-tech manufacturers in your area, it could be challenging to find a tenant in that sphere. Instead, make a point to understand the local industries that your area already supports. What types of properties do those industries most need, and how can you make your property fit those needs? Market your property specifically based on those features, and you’re sure to find a few applicants.
Understand Other Local Properties
On the flip side of that coin, it also pays to understand your “competition.” What features and amenities do other local properties offer? Pay special attention to the better buildings with quality, long-term tenants. Is your property missing some of those key features? Would it be a good fit for start-up businesses not yet ready for one of the area’s larger spaces? Are there tenants in an existing space that are ready to expand to a space like yours? With your understanding, you can establish the correct business relationships based on trust and local area knowledge. Over time, you can be recognized as the property owner of choice when it comes to business leasing and relocation.
Offer the Best Space in Town
We hope this isn’t the case, but maybe you’re having trouble finding a good tenant because you’re not offering a good property. Does your space offer the best amenities, layout, and opportunities available? Don’t discount aesthetics, either. Just like residential real estate, some tenants may appreciate a fixer upper, but others will want a clean, updated, move-in-ready (e.g. professional) space. There may be specific things you can do to make your property more attractive to prospective tenants. Consider adding a break room, improving insulation, or adding indoor plants or outdoor landscaping. As a bonus, these efforts will only enhance your property’s value over the long run.
Advertise, Advertise, Advertise
We’re advising you to “advertise” three times not just because it’s important, but because there are three avenues for advertising that we advise you to take. One, take advantage of digital options. List your space online, promote it on social media, and send out targeted emails to segments of your client base. (You can even offer incentives for a referral.) Two, send direct mail. Postcards or brochures are a great tangible way to connect with local business owners. Three, place good quality signage in front of your property. But don’t forget: All advertising comes with attached costs. Track your results so you know where to focus your dollars in the future.
Break out Your Networking and Sales Skills
Property management is, at its core, a people business. So to succeed, you need to get in front of the people. Attend networking events to meet business owners and gauge their needs for additional real estate. Go door to door around town and introduce yourself to business owners whom you’ve targeted as good fits for your space. Or make cold calls to all the businesses in town. Through these conversations, you will soon find local businesses looking to relocate for specific reasons.
Hire a CRE Brokerage
If all of the above sounds like more work than you signed up for, it’s out of your comfort zone, or you don’t have the skills and connections to make it happen, there is one all-encompassing solution: Hire a CRE professional to help. Commercial real estate brokerages are dedicated exclusively to the leasing and selling of commercial property, which can include office, retail, multi-family, and industrial real estate. CRE agents are constantly in touch with local business owners, property management companies, and other brokers. So they know exactly what’s happening in their market at any given moment. And, they have a fiduciary responsibility to you, so you won’t have to pay them until they provide you with a fully-executed lease. We may be biased, but if you ask us, it’s the smart way to go.
Ready to Find the Best Tenants for Your Commercial Real Estate?
NAI Beverly-Hanks continually strives to be the best in the business and provide you with the expertise you need. Founded in 1976, Beverly-Hanks has grown to become the largest full-service commercial brokerage firm in Western North Carolina. Our roots are local and deep, which has allowed us to develop lasting long-term relationships with our clients.
Our affiliations with NAI Global, Society of Industrial & Office Realtors (SIOR), Certified Commercial Investment Members (CCIM) and the International Council of Shopping Centers (ICSC) enable us to extend our services to companies and investors throughout the nation, as well as internationally. The power of this direct and purposeful contact with other markets allows us to assist our clients with quicker, more efficient acquisition and disposition of real estate.
Does that sound like the kind of support you need? Contact us today to speak with an NAI Beverly-Hanks agent about how to find the best tenants for your Western North Carolina commercial real estate.