Blending tenants to create the most mutually beneficial result is part of the fine art of good commercial property management. Finding an ideal mix of tenants for your commercial space can be a balancing act, but when you get it right, the result can be magic. Here’s how to get started:
1. Make sure your starting price is feasible for local businesses.
This is the best initial way to bring great businesses to your property. The starting cost of the lease should be attractive; a feature that makes the tenant choose your property over a competing property. It will also help you build great relationships with tenants that will endure.
2. Maintain positive relationships with your tenants.
Be in touch often, and build a warm, friendly rapport with each of your tenants. Know how things are going with their businesses, what’s going on in the community, and how they feel about their space. Keeping your finger on the pulse of your tenants’ businesses will not only help you become an exceptional property manager, but will allow you maximize your income as well. Attention to your tenants will give you essential insight into where your tenants should be and how you can best blend the businesses in your property. And of course, having positive relationships with your tenants reduces turnover and builds strong community loyalty.
3. Consider the natural flow of your space.
If you’re managing a strip mall or other multi-tenant retail space, carefully consider the mix of tenants and their appeal to foot traffic. Try to imagine the ideal balance of shopping, dining, specialty retailers, and service providers that will maximize customer engagement and time spent on your property. Now visualize the perfect collection of food, retail, and service options that would appeal to your local demographic, and try to obtain a blend of tenants that is as close to that ideal vision as possible.
4. Keep your eyes on competing properties.
Spend time in the neighborhood you’re investing in and investigate competing properties of a similar profile to your own. Examine their tenant mix, vacancies, and rent price-points. Ascertain if their tenant mix is appealing to the neighborhood or not. Now take the time and invest the funds to make sure that your property and tenant mix significantly exceeds the standards of the competing properties in your community.
5. Learn from vacancies.
Few things are more depressing in commercial property management than a fantastic space with a large number of enduring vacancies. If the property is great but the space is continually vacant, the manager is doing something wrong. Find out from other business owners why the spaces are vacant, and learn from that information. Rents that are too high for the market and poor management skills will drive business away from even the most interesting retail spaces.
If you’d like help with your commercial property management, please contact us today! We would love to speak with you.