Strategies for Attracting Commercial Property Tenants

9/3/2024 (Permalink)

Commercial Property Tour

Strategies for Attracting Commercial Property Tenants

Attracting great tenants to your commercial property can present challenges, but with some effective strategies, you can enhance your property and secure favorable, long-term leases. Helping your property stand out in a competitive market and ensuring it provides value for potential tenants is an effective plan to increase your commercial occupancy rates.

1. Offer Lease Flexibility and Incentives

Position your lease offer to incentivize tenants and provide flexibility by including a free month of rent or a discount on the rent for the first year. If you can, offer additional parking, storage or other incentives that make your property stand out.

When considering attracting tenants for commercial property, note that many businesses going through growth stages want space they can lease for six months to a year. A flexible lease or shorter terms allows tenants to move if their business changes or grows. Flexible leases also help attract a wider variety of potential tenants.

Provide an allowance for tenant improvements to help companies customize a space to show their business personality. A Tenant Improvement Allowance (TIA) consists of money given from the landlord to the tenant to assist in building out or customizing the space. Possibilities include new flooring, painting, signage, and more. Additionally, highlight existing features of the property, such as its prime location, natural light, or high ceilings.

Add access to amenities like a conference room, gym, kitchen, or lounge area. These features can make your commercial space more attractive to tenants and can entice companies looking for something more than simply space. Commercial tenants who can enjoy a package of amenities are more likely to renew when their lease term is up.

2. Use High-Quality Signage

Put the word out by using high-quality signage on your commercial property. To ensure prospective tenants can see the information if they drive by, use signage approximately 4’ x 4’ and post it prominently.

High-quality signage reflects your professionalism. It also attracts more clientele, improves public perception of the property, and cultivates a brand identity. Ensure the sign displays “For Lease” and your company logo. Include a contact phone number, name, and web address for yourself or your broker.

3. Brochures and Direct Mail

Reach out to prospective commercial tenants through direct mail by sending flyers, brochures or postcards to let them know you have space for lease in their area. Include details and highlights about the property, such as available square footage, use type, amenities, rental price, and special features.

Consider including a digital link in your direct mail pieces to increase the number of ways potential tenants can respond. This strategy has been shown to increase response rates, especially if you have an online landing page that includes photographs and additional information. Use a graphic design service to create professional-looking direct mail pieces that show your commercial property to its best advantage.

4. Market Through Email

Thinking of attracting tenants for commercial property can present a challenge, but you can get the word out quickly to many prospective tenants using email marketing. The process is relatively simple with email marketing online services like Mailchimp or Constant Contact. These services help you create professional-quality emails to share your property’s availability, photos, square footage, lease rates, and incentives, and other information to attract tenants.

On your email list, include local businesses that might be looking to move or expand their space. Include information about what your property offers and why it would make sense for their business. Email marketing is also an effective way to approach existing tenants and ask for referrals. Maintaining good relationships with current tenants means they are often willing to help you find new renters.

Quickly follow up on emails, phone calls, and other leads when marketing your commercial space. If you take too long to respond, potential tenants may move on to the next option. Also, do not leave prospective tenants guessing; be transparent about your available commercial space's features, amenities, and price. All of your key marketing materials should include these critical details.

5. Increase Security

Potential tenants value a property that keeps their business and employees safe and secure. Invest in building security features such as alarm systems, security cameras, and security guards. Additional safety features include gates and fencing around the perimeter of the buildings and automated access gates to restrict entry. Add or enhance existing lighting to include motion-activated and consistent lighting for pathways, parking lots, and entrances.

Outfit the building with security windows and reinforced doors resistant to vandalism and tampering. Enhance internal building security with a keycard or keypad access for entrances, elevators, and restricted areas. Implement an emergency exit plan that includes secure yet accessible exits with alarms that trigger when opened. Conduct regular training and drills for fire drills, evacuations, and lockdowns to ensure all building occupants know how to respond in case of an emergency.

6. Enhance the Property, Inside and Out

Invest in interior and exterior property maintenance and upgrades to attract and retain tenants and command favorable lease rates. Repair property damage immediately to avoid further damage and increased repair expenses.

Using skilled and professional service providers for projects such as flood damage restoration is essential to ensure the property receives efficient, high-quality repair work. This strategy maintains the property’s utility, aesthetic qualities, safety, and overall property values to attract new tenants. It also satisfies existing tenants, making them more likely to recommend your property to others.

A regular maintenance program for your commercial buildings can extend the life of building roofs, HVAC systems, flooring, and other building components. This action can delay major expenditures, reduce costs, and ensure the property remains attractive to potential commercial tenants.

7. Use Anchor Tenants as Leverage

If your commercial property has attractive anchor tenants, include them in your promotion strategy. A good strategy for attracting tenants for commercial property includes targeting prospective tenants and businesses that complement the anchor tenants and have customers in the same or similar demographics. Consider providing foot traffic analysis and demographics on the center’s existing customer base to demonstrate how it aligns with the needs of other potential commercial tenants.

Discuss the anchor tenant in negotiations and highlight the reduced risk and added value it brings to the commercial complex. Additionally, if the anchor tenant has signed a long-term lease, this emphasizes the stability and reliable traffic source for years into the future.

Attract Quality Commercial Tenants

Applying these strategies can significantly increase your property's attractiveness to potential commercial tenants and secure leases that benefit both parties. SERVPRO® restoration services can help you repair, maintain, and enhance your property to attract and retain quality commercial tenants. Call us today!