4 Ways to Make Your Commercial Property More Appealing to Tenants
Investing in commercial property is a great way to diversify your portfolio and earn additional passive income. However, the commercial property market is very competitive and has become more dynamic in the post-pandemic era. As a result, it’s important that, if you are looking to invest in commercial property, you look for ways to make your commercial property more appealing to tenants and differentiate it from the competition’s offerings.
Competition for tenants in commercial property can be fierce, so it is important to find your niche and see what makes you different from others in a potentially crowded space. Finding and acquiring new commercial tenants can pose some challenges, particularly in today’s current climate, largely because there is a shortage of offices and commercial property in Doncaster and other local areas. With that in mind, let’s take a look at how to make your commercial property more appealing to tenants.
Upgrade Your Property
One of the first and most important things that tenants will be looking for in their search for the right commercial property is the condition and quality of the building and its facilities. Properties which are modern, well-maintained and highly functional will always have a higher appeal for tenants than commercial properties that are dated, run-down or no longer running efficiently.
To make your commercial property more appealing to tenants, look to upgrade your property where there may be gaps, such as by making repairs, investing in renovations and new decor, improving the energy efficiency of the property or getting new signage. Not only will making updates to your commercial property make it more appealing to current and potential tenants, but it can also help to improve the profitability of the building.
Make Your Location Known
Another thing which influences the appeal and desirability of commercial properties is the location. Having property in a prime location brings a whole host of benefits to both tenants and landlords, including improved accessibility, better amenities and a wider range of demographics using the commercial property.
You can make your location known by highlighting these advantages and opportunities to tenants, as well as others such as the distance to and from major motorways or roads, public transport links and competitors. This way, you can also highlight the local neighbourhood and community, with things such as culture, safety, reputation and diversity all feeding into how your commercial property is perceived by tenants.
Ensure Cost Efficiency
One of the things that is most important to tenants is the cost of the monthly rent and this will likely be a crucial factor in potential tenants choosing to lease a space within your property. Of course, as a commercial landlord, you will be looking to make a profit on your initial investment, so securing this rental income is of the utmost importance. If competition is fierce within your local area, then you want to ensure that you’re not undercharging or overcharging, as these can both be damaging to your income stream. Instead, look to match or be very similar to the cost of local competitors, so that you’re just as appealing as they are.
Another way to offer cost efficiency to your tenants outside of the rental price is through you approach to energy efficiency. SMEs will likely be keen to reduce their energy outlay wherever it is possible, so a growing number of businesses are emphasising environmentally friendly practices, such as solar panel installations and double glazing. You may find that you can take advantage of government funding or tax breaks if you’re happy to finance these concerns on behalf of your tenants.
Offer Flexible Terms
In a crowded market, you want to have a USP that makes you stand out from competitors. One way in which you can do this is to offer flexible terms and incentives that are not only appealing to new and prospective tenants but also involve current tenants, who might feel that they are being undercut if they don’t get offered the same. You could look to offer tenants, whether new or current, flexibility in some of their lease clauses, a reduced rent amount, a better range of payment options or reduced maintenance responsibilities.
Incentives such as free rent, payment discounts, regular upgrades and improvements or general perks, such as concierge services or bike storage, can help to attract new tenants and build long-term relationships with those who have only recently moved in. If they feel as though you are doing a lot for them, then they will likely repay this with long leases and desired tenant behaviours.
Invest In Smart Technology
Alongside other eco-friendly approaches, there is room to offer smart technology within your commercial property. This is becoming increasingly popular and more common across commercial properties, as, for example, buildings which have wireless lighting show tenants that the utilities have recently been upgraded and don’t need to be refitted for a number of years, which is a positive for the tenant.
There are many different reasons why businesses may consider investing in smart lighting, which is just one of the reasons why commercial property owners and landlords should consider implementing it as a standard. Smart lighting can save businesses money, particularly when linked with motion sensors or to improve security measures.
Of course, smart lighting isn’t the only way that commercial landlords can add smart technology to their property. HVAC optimisation is another way in which landlords can improve their properties for tenants. A lot of businesses may assume that it is just to control the temperature, but it can also monitor and adjust the air quality, which creates a healthier and more comfortable indoor environment. These systems can be programmed to respond to changing conditions and weather changes in real-time, thus reducing energy consumption and use, as well as expanding the lifespan of the integrated HVAC equipment.
