How to Find Tenants to Fill Your Retail Property

Posted by on Feb 12, 2016 in Blog - Commercial Investment Properties | 0 comments

How to Find Tenants to Fill Your Retail Property

 

Owning retail property is one thing but in order to make money off of these buildings for commercial investors it’s obviously crucial to find tenants. Unlike owning say, a residential apartment where there is virtually an endless supply of potential tenants, it can be hard to find people to fill retail property.

While some potential retail lessees may come to you, the best way to fill a space is with a commercial property management company and their professional recruiting tactics. Much like wavering to a 5-star college athlete, you need to sell tenants on your building and location so they don’t contract elsewhere. Here are some tips on how that is accomplished:

Knowing a Realistic Tenant:

It’s important to know the property and the realistic types of businesses that could be housed there. For example a telemarketing company is not going to set up shop in a vacuous space that was once a warehouse. Identify if the property is best designed for retail, offices, restaurants, manufacturing, etc.

retail property manager

New retail property for lease

Knowing what type of industry the property is set up for relies not only on the building, but the surroundings as well. Does the building have good frontage space which could attract a retailer or is it hidden? The location also needs to be identified if there is a need for the future tenant (all offices, no restaurants for example) and make sure an established business of the same type isn’t in the area (two gas stations on the same block).

What to Do With the Information

Once a guideline of potential tenant types is created, the next step is to go and find them. There are two basic types of commercial tenants – new and those who want to relocate.

·         Finding New Tenants – It can be hard to find new businesses looking for a building simply because they may not exist. The best places to look are in retail trade publications, within a network of commercial brokers, and with the local chamber of commerce. Online and local ads are also crucial.

·         Finding Relocators- there is a slippery slope with a business moving because most don’t want to leave an established place which their customers are familiar with. The best strategy is to get ‘boots on the ground’ and find a growing commercial business that may be in need of a larger property or to visit other towns to see if any businesses may be wanting to add a franchise location in your city.

Commercial property management companies are experienced and adept at finding these potential tenants through these resources and a wide variety of additional methods. A building that sits idle long periods starts to gain a stigma within the community (not to mention doesn’t make any money) so it’s important to limit this amount of time at whatever cost.

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