Updated: Mar 23
Despite the fact that the commercial market is on the mend, some landlords are still having difficulty finding suitable renters for their properties. What should you do if you've computed an exact rent and advertised it to clients but can't fill your vacant commercial space?
Consider these creative strategies for novice property investors and seasoned landlords alike before calling a real estate broker to help you sell your property.
Provide lease terms that are flexible
When a company is looking for office space, it can be very difficult to find the perfect location. This is because there are so many factors that need to be considered. The size of the office, the location, and the lease terms. If a company finds a perfect space but does not like the lease terms then they might not move in.
Term lengths of one or two years are becoming more typical. You can also provide benefits like reduced or free rent for the first few months. Lessees are more inclined to sign a longer lease once they've settled into the premises and their business has taken off. This will allow them to negotiate better deals and get what they want in an office space without having to settle for less.
Allow for space customization
The more you have the potential to customize your space, the better.
The first step in customization is determining what your clients need. Do they need office space with a conference room? Do they need an open floor plan? Do they require storage space or a reception area? Once you know what they need, then you can start thinking about how best to create those features in their lease.
Make sure the scope of the renovations and the financing are agreed upon before work begins. Some tenants may gladly accept a long-term lease if the landlord pays for some or all of the renovation expenditures, which can be a great bargaining chip.
Convert your office into a co-working space
The demand for co-working spaces is growing in the US. That is because more and more people are looking for flexible work spaces. The trend is also picking up in other countries as well. This has led to a shift in commercial real estate where landlords are converting their vacant office space into co-working spaces.
The conversion of vacant office space into co-working spaces can be a lucrative business opportunity for landlords as they make money from both the rental and leasing rates.
Pop-Up Book Stores
Book Pop-Up Shops are a new way of promoting and selling books in different places. These shops can be used for a variety of purposes, such as book signings, author readings, lectures, workshops, and more. All that is needed to create one is the space to put the books on display.
For those who own commercial real estate looking for an alternative form of income or those who want to promote their property in order to get it leased out quickly, this could be a great opportunity.
Make Your Space a Private Event Venue
The idea of renting out commercial space for private events is not a new one. It’s been around for decades. However, in recent years the trend has exploded.
Private event spaces are great for hosting meetings, workshops, conferences and other corporate events that need a space that is more intimate than a ballroom or conference hall.
Private event spaces also provide an opportunity to increase revenue streams by renting out their space to private groups and organizations as well as businesses looking to host off-site meetings or training sessions with their employees.
When Is It Time to Sell?
So you have decided to sell your property. Before anything else, it is a good idea to sit down and clarify your motivations and draw up a basic time frame for the selling process.