How To Attract And Retain Tenants For Your Commercial Property
Category Commerical Property News
You've invested in a commercial property. Incredible! Commercial property is a fantastic long-term investment. However, after you buy a property you've now got to take the right steps to get tenants and keep them.
Let's dive into nine key aspects of attracting businesses to rent your property:
- Highlight The Location
One of the most crucial aspects of choosing the right property is location. So, potential renters are going to want to know a property's proximity to airports, highways, shops, and public transport hubs. Advisory company, Black Collie Capital, explains, "Prime locations tend to have high demand, making it easier to attract potential renters and increase occupancy rates. As a result, rental income is likely to be higher, resulting in increased profitability and return on investment."
- Competitive Pricing
Have you done in-depth research into what similar commercial properties in surrounding locations charge for rent? This is where having an industry specialist on your team comes in. OfficePlace brokers specialise in commercial property throughout South Africa's hubs: Johannesburg, Pretoria, and Cape Town. Through our portfolio of properties and industry expertise, we can suggest a rental price that will get you a return on investment and long-term stability.
You may have a number in mind, but take a step back and see what's actually realistic and what will get you to your goals.
- Improve The Condition Of The Property
It's important to go through your commercial property with a fine tooth comb to see what improvements can be made. This thorough examination allows you to identify areas where you can enhance the overall appeal and functionality of the space. A few upgrades can set your property apart from the rest and can be reason enough to increase your asking rent.
- Get Clear On Maintenance
Commercial maintenance is the practice of ensuring that commercial buildings are safe and functional for the people in them and that everything complies with the relevant property laws. This extends to office space, warehouses, retail outlets, and industrial plants.
Property maintenance is essential; regular checkups, services, and fixes can prevent significant and costly failures that could otherwise disrupt business operations. It's important to be crystal clear on what maintenance you, as the landlord, will be responsible for.
As a tenant, properties that are compliant with health and safety, and focus on productivity, are extremely attractive for long-term leases.
- Incorporate Sustainability Initiatives
Green practices and sustainability are becoming commonplace and even expected across different industries. In fact, sustainability is one of the biggest office space trends for the year.
Entrepreneur highlights the statistic that up to 75% of millennial workers are willing to take a pay cut if it means working for a company that is environmentally responsible. Also, green initiatives are a fantastic way for companies to save money. More efficient heating and cooling systems and more energy-saving methods can make a big difference to a company's bottom line.
So, to keep in line with sustainability trends, many companies look for eco-conscious buildings.
- Efficient Security
According to SME South Africa, security is a huge consideration for companies looking for commercial space. Therefore, ensuring efficient security measures within your commercial property is essential! Think access control systems, 24/7 surveillance, security personnel, and alarm systems. By implementing efficient security protocols, you not only meet the stringent requirements of prospective tenants but also establish your property as a secure and trustworthy choice.
- Ways To Counteract Load Shedding
Let's face it, load shedding is going to be a part of South Africa's foreseeable future. In fact, the Mail & Guardian explains that interrupted electricity will be around until 2027. So, what does this mean for commercial property owners?
Businesses do not want to deal with loss of productivity and output during outages, so buildings that have measures in place - such as batteries and solar panels - are extremely attractive.
Not only that but there are tax benefits to investing in solar. Sage explains, "The initial Section 12B capital allowance provides for accelerated depreciation of 100% of the initial costs in the year the business started using the solar system. From 1 March 2023, this incentive will increase to an accelerated depreciation allowance of 125%."
- Lease Flexibility
You can make your commercial property far more attractive through flexible lease options. For example, you could allow for sub-letting so that the main tenant can make use of space they may not need.
- Lease Renewal Strategies
Make the renewal process as simple and attractive as possible via professional property management, lease renewal reminders, soliciting feedback from tenants, personalised offers, and being open to negotiation. This will result in a tenant that's way more likely to want to extend their lease and you, as the property owner, a more sustainable rental arrangement.
In the dynamic world of commercial real estate, attracting and retaining tenants requires a strategic and proactive approach. By focusing on the above 9 points, you can set the stage for success.
Author: OfficePlace