Every businessperson has heard the old adage: “You have to spend money to make money.” Commercial landlords would be wise to heed this advice.
Unfortunately, economic times have hit commercial landlords hard since the market tanked in 2008. But that’s no excuse for those still in the game to avoid the realities of their situations:
1. Tenants are Still Looking for Properties to Rent
Someone is going to win tenants’ leases. Will it be you? Not if you haven’t spent any money fixing up your commercial property in the past three years. Now is the time to invest a little money to make your property “pop.” You want curb appeal, but you also want to fine-tune the interior a bit to make the place look exceptional to potential renters who stop by to take a look.
At the very least, make sure the place is clean and move-in ready — nothing should stand in need of repair or be “negotiable.” Today’s market is not favorable for those kinds of landlord short cuts.
2. Competition is High
If you want to compete with all the other “hungry” commercial landlords in your area, you have to be willing to put forth an investment. Is your space really worth what you’re asking? If you haven’t pulled the necessary reports in awhile, now’s the time to do some market research and make sure you’re priced competitively in your area for your type of property.
3. The Market is Rebounding
Certainly, real estate is slow in rebounding… but all signs point to an upward swing. And when that happens, if you haven’t spent anything to help you, you’re likely to reap what you haven’t sown.
4. You Have to Do Your Own Cheerleading
Even if your property is primed and ready for new tenants, don’t expect them to magically appear. You have to do the legwork to move traffic to your commercial property. Start by placing a classified ad in the local newspaper’s commercial real estate section, and check into the cost of advertising in a trade magazine specific to your property’s use or location.
5. Tenants Are Online ... And You Should Be Too
Advertising on the Internet is a crucial step in finding qualified tenants. Add your listing to websites like LoopNet and Craigslist, and always include a picture or two as well as all the wonderful features of your property.
Use a word processing application to create a flier with photographs of the property and pertinent details, such as square footage, parking, zoning, and lease requirements, and save that flier as a PDF. Then email it to colleagues, friends, and owners of similar properties who might be in the market to expand their investments.
Commercial landlords who invest today will be happier – and more profitable – tomorrow. A little financial outlay can result in huge rewards.
