Commercial real estate is one of those areas that investors always recommend. However, buying a building or premises is one thing. Filling it with the right kind of tenants is another entirely. The process is a lot more difficult that you might think, and many inexperienced real estate investors have had their fingers burned. We’re going to take a look at everything you need to know about attracting high-quality tenants to your premises. Let’s get started with the basics.
Location is vital
First of all, the location of your commercial real estate is of critical importance. In an ideal world, you will want to be in a busy area near to first-class travel routes for easy access. Don’t forget, you are trying to appeal to businesses with specific things in mind. They look at things like delivery costs and the distance their employees have to travel. If you plump for a building that is miles away from anywhere, it’s not going to work for anyone.
Invest in amenities
Think about what your tenants want from a workspace. WiFi, for example, is an absolute must, as are private lounges and meeting rooms. Perhaps you could provide extra services such as conference facilities. You could consider setting up a little cafe to feed people. Office blocks and business premises with excellent amenities tend to enjoy higher tenant retention rates than those that don’t. It is advisable that you make some effort in this area if you want to attract the high-caliber, high-paying market.
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Keep it clean
Any issues of cleanliness will go against you when you are trying to attract and retain great tenants. And, as Ace Cleaning Systems point out, there is a lot to consider when you own commercial real estate. Offices need to be spotless – as do restrooms. Communal areas are often hard to keep clean and tidy, and if you own a tall building, who are you going to get to clean the outside windows? None of this comes cheap, and you will have to ensure that you account for extensive and regular cleaning in your rental charges and management fees.
Be sector-specific
You also have to bear in mind that not all industry sectors will live happily next to each other. Let’s say you attract a broad range of businesses to your building. In one room, you have the ultra-serious accountancy firm. In the next, you have a bunch of creative advertisers. There might be an art collective in another room, and a young, noisy startup in the last – all on the same floor. Clearly, there will be problems going forward if you don’t account for everyone’s needs. Keep more serious businesses, like the accountants, insurance firms, and lawyers, in one place, or on one floor.
There is a lot to think about when buying commercial property – but even more so when you start renting it out. With everything in this list included in your business plan, you should cover most of the basics for attracting the right tenants to your commercial real estate assets.