If you own a commercial property that you are hoping to rent out to one or more businesses, you need to do what you can to make that lease space more attractive to prospective renters. Setting a fair rental price is key, but there are a number of other things you can do to set your commercial space out from the competition. In today’s blog, we share some tips for commercial investors who are looking to make their rental space more appealing to potential lessors.
Making Your Rental Space More Appealing
There are a number of things you can do to make your commercial business space more appealing to potential lessors other than offering a lower price on rent. Here are some ideas for making your commercial space more enticing to prospective renters.
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1. Lease Flexibility - While we understand that you’d prefer to have a commercial tenant sign a three-year lease right away, sometimes that longer lease can intimidate potential tenants. Offering a short lease can be more enticing, and it can actually work out in your favor if the market changes dictate that you increase the rent amount sooner rather than waiting until the end of the third year.
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Exclusivity Clause - You wouldn’t want to finally get your small organic coffee shop up and running only to find out that a Starbucks is opening across the street in six months. If you own multiple rental properties in close proximity to one another, offering potential tenants an exclusivity clause can help to protect their bottom line and make your property a safer choice when deciding where to locate. This gives potential tenants some peace of mind knowing that a direct competitor won’t open up shop next door.
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Offer Referral Rewards - If you own a unit that rents out space to multiple businesses, consider offering a rent reduction if a current lessor refers someone to you who ends up renting a space. Referral discounts are great because it means that your tenants are always interested in helping fill vacancies because it helps their bottom line. It can also save you the time and reduce advertising expenses because other parties are helping to fill vacant rental spaces.
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Give Your Space A Facelift - Make sure that your rental spaces have good eye appeal to potential customers. You’d be amazed at how far some landscaping and a fresh coat of paint can go in helping improve the eye appeal of your rental space. If your space looks inviting to businesses, it will also look inviting to potential customers, and that can lead to long term tenants.
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Clearly Defined Access Easements - Finally, if you are hoping to rent out an area with a shared parking lot or road access, make sure that the rights and responsibilities of the tenants and their customers are clearly defined in an easement agreement. If you have an easement agreement with other commercial spaces, really make it easy for tenants to understand who has the right to come and go onto the property. It may sound obvious, but understanding where deliveries can be made and how snow removal is handled from shared lots during the winter are all details that need to be worked out in a commercial lease agreement, so consider syncing up with the team at Commercial Partners to assist with the drafting of an easement or lease agreements that include shared access.
Let us help find the right tenants for your commercial space. For more information, or for assistance with a different commercial matter, reach out to the team at Commercial Partners today at (612) 337-2470.