If you’ve found this page, then that means you’ve purchased a commercial property and are on the lookout for new tenants. Congratulations! You’ve passed the first hurdle. Now, you need to know the ins and outs of finding good, reliable tenants who you can maintain a courteous relationship with for a long time. In this blog, we will explore effective strategies on how to find a tenant for commercial property, so that you can get started (or continue) on your commercial real estate journey.
Understanding the Commercial Real Estate Landscape
The world of commercial real estate is diverse and every type of commercial property will require different strategies and will attract different tenants. Therefore, before we move on to strategies, it is best that you understand what type of property you own so that you can make use of the most efficient strategy for it.
- Office Spaces – These include traditional office buildings, coworking spaces, and executive suites. These generally have a lease term of at least one year.
- Retail Spaces – This category is made up of storefronts, shopping centers, and large retail complexes. These spaces will also require additional space for parking and other facilities.
- Industrial Properties – Warehouses, distribution centers, and manufacturing facilities are all a part of industrial properties. The type of client you’ll receive will depend on the scale of your property.
- Hospitality – These are commercial properties such as hotels, motels, inns, and other lodging facilities. As a property manager, you should expect more day-to-day work when compared to other rental options.
- Specialized Properties – These could be healthcare facilities, educational institutions, or sports complexes. These properties will come with their fair share of challenges but will likely generate more revenue than most other options.
Identifying Your Ideal Tenant
The best starting point is to identify your ideal tenant. The type of commercial property you own will help narrow down the target market. After that, you can look into what kind of businesses would thrive in that space. For example, if you own an office space, you could target tech startups in your local area. If you own an industrial property, you could look into large-scale manufacturers. Knowing your ideal tenant will help you tailor your search efforts to find the most suitable commercial tenants.
How to Find a Tenant for Commercial Property
1. Create Listings on Online Platforms
There are many online listing platforms that allow you to reach a broad audience. Websites like LoopNet, and CoStar, are public websites where you can upload your own listings. There may also be dedicated commercial real estate sites in your local area that will act as an excellent resource for showcasing your commercial property. These platforms attract a diverse range of potential tenants who are actively looking to rent out a space.
2. Get the Help of Real Estate Agents
Commercial real estate agents are experienced in connecting property owners or property managers with suitable tenants. If you’re just starting out as a real estate agent, you should consider enlisting the help of a reputable agent in your local area to show you the ropes. These real estate brokers tend to have extensive networks and market knowledge which you can put into use yourself in the future.
3. Make Your Property Stand Out
There are thousands of listings on online platforms. In order to get your commercial property noticed, you need to craft detailed, engaging, and visually appealing property listings. Your listing should highlight the unique features of the property, any advantages to setting up in that location, and showcase the potential for business. You can use high-quality photos, 3D virtual tours, and floor plans to make your property stand out.
You should participate in local industry events, conferences, and business gatherings. These events give you an opportunity to connect with potential tenants, fellow real estate professionals, and other experts. You can use these events to promote your property and yourself, while also developing meaningful connections for future purposes.
5. Leverage Social Platforms
Social media platforms like LinkedIn, Facebook, and Twitter can be used to promote your commercial property. They allow you to join relevant local groups, participate in discussions, and interact with potential tenants directly. There are even dedicated local groups on Facebook that will allow you to list your property for free.
6. Target Local Businesses Directly
Targeting local businesses is a great way to start promoting your property. You can place advertisements in local newspapers, and community boards to get their attention. Or you could create a list of all the local businesses in your area that are a part of your target market, and then contact them individually with your pitch.
7. Utilize Your Referrals
You should use your existing network and ask for referrals. This could be from friends, business associates, industry contacts, and even existing or previous tenants. It’s highly likely that someone may know of businesses seeking a commercial space. Recommendations are also more likely to confirm a sale than any other means.
Finding the right tenant for your commercial property is crucial for the success of your real estate business. The process of finding the right tenant is an investment for the long term. It’s not just about filling the space you have, but rather developing a mutually beneficial agreement between the two parties. Commercial properties can be a lucrative opportunity for most people, so make the most of your investment by finding the most suitable tenant for your property.