Finding the Right Tenant for Your Commercial Real Estate Property
If you are an investor in commercial real estate, you have likely had the experience of trying to secure the right tenant to rent out your space. Getting clear on your ideal tenant is a necessary first step to ensure that you are looking in the right places. Obviously, you are targeting tenants who are looking to expand or contract their current premises, to relocate, or who are considering renewing a current lease, as well as new businesses ready to break into the market, but what are other factors you may need to examine?
Showing your commercial real estate property to potential tenants is all well and good, but if you aren’t screening them properly, it may be for naught. Whether you are working with a broker or have chosen to show the property yourself, knowing how much capital a viewer is bringing to the table will help to save you lots of time and energy in the long run.
List Your Property Correctly
With so many different types of commercial real estate, you may be unsure as to what category your property fits into. The first step in listing your property correctly is to find out what it is zoned for. If you are listing a building zoned for industry as office space, you are obviously going to be attracting the wrong type of tenant.
When you are clear on zoning, take your research even further. Learn from any prior vacancies. Ask surrounding businesses about what sort of businesses have done well in the location and which seemed to close prematurely. Adding a suggested use for the property in your listing will help to engage an audience that is more likely to thrive in the space, therefore minimizing the chances that the lease will be broken.
Another key factor in listing your property is ensuring that it is priced appropriately for its location. Research other comparable spaces in the area so that you can put your property on the market competitively.
Keep Up With Prior Tenants
Maintaining a positive relationship with any prior tenants you have had is a great way to attract the right future tenants. The fact is, people talk, and nobody wants to rent commercial real estate from a landlord with a negative reputation. Make a positive name for yourself by making repairs as they are necessary, keeping the lines of communication open with your tenants, and being willing to stay open to any suggestions they may have in regards to the property.
Educate Yourself on Surrounding Businesses
Knowing what else is around your commercial real estate property is another great way to make sure that you are appealing to the right sort of tenant. Watch other businesses and notice which ones seem to be thriving and which appear to be falling short of their business goals. Notice what types of competition are in the area that may draw away from your tenant getting the visibility they will require. As mentioned earlier, having a gauge of which types of properties are more likely to flourish in your particular area will help to captivate the right types of tenants. This also shows potential tenants that you have done your homework and are as invested in their success as they are.
Find the Appropriate Broker
As you can see, there are many components to be considered when it comes to drawing in the right tenant for your commercial real estate property. Working with a qualified broker who is well-educated on the market in your area takes out the majority of the guesswork and helps to guarantee your success as a landlord or investor in commercial real estate. Look for a broker who is familiar with your particular genre of commercial real estate and who has a proven track record when it comes to negotiating leases successfully.
Looking for Commercial Real Estate in the Hattiesburg Area?
Whether you are a tenant searching for space or an investor trying to find property, working with an experienced team of brokers is guaranteed to make the process smoother, easier, and more manageable. At SVN | Southgate Realty, LLC, we are proud to be Hattiesburg only globally affiliated real estate brokerage, allowing us to share our Mississippi communities with investors around the world. We take our over 37 years of know-how to offer you an unmatched, superior experience. Take a look at our properties today and call us to get your search started!