When you have a vacancy or a pending vacancy in a commercial or retail property, you need to target the right tenant to fill that vacancy. This then suggests that not all tenants will be suitable for a given property, and that observation is correct and real.
Commercial property agents should know exactly what the right tenant would be for a given vacant area in any property; and then they should know how to find that targeted tenant. Top agents do this all the time. These top agents are in touch with the movements in the local area and business community.
- How much do you know about the local business community and its leasing pressures and leasing future?
- Do you know what tenants are looking for today when it comes to new property movements and where they are moving to?
- Are you in touch with lots of tenants as part of the prospecting model that you use?
So what does an ‘ideal tenant’ look like in your property location? To a degree the question is answered with the following factors in mind:
- The needs of the local business community
- The prevailing tenant mix
- Business sentiment and volatility
- Supply and demand for new and older lettable space
- The growth of the surrounding population
- The business base and profile of the local area
In any investment property location and area, there will be ‘seasons’ and ‘peaks’ of property enquiry in any given year. In most ‘years’ the leasing market is active for just 10 months, allowing for seasonal holidays, climatic conditions, and property availability. For this very reason it pays to work well in advance with known property vacancies and leasing requirements.
An ‘ideal tenant’ will vary from property to property but many of the following factors could be on the list of ‘tenant requirements’ from a landlord perspective.
- A stable business that brings brand and identity to the property
- A tenant that integrates into the property existing tenant mix well
- Lease terms and conditions that strengthen the property rental income over the lease term
- A solid and secure market rental that underpins the value of the property for the landlord
- Tenancy design and layout that gives a good image to the property
Does such a tenant exist? Yes is the basic answer, and to find them you should make contact with all of the businesses in the local area on a regular basis. Over time you will find the good tenants, and those that want to move to other quality properties. Most businesses stay within the same general location when they relocate, so they can take their customer base from property to property.
Commercial Real Estate Online 