When you own a commercial property and intend to lease it to a third party, there is plenty to consider in terms of getting the agreement lined up and starting a relationship that you can both be confident in. But especially if you're new to the commercial real estate game, it's not always easy to identify which prospective tenants are ideal and which are, well, something less than that.
With that in mind, we've put together a guide to help you find the right commercial tenant for your property so you can enjoy long-term success together. Read on to learn more:
This is the kind of thing that probably goes without saying, but you need to do as much due diligence on every potential tenant as you possibly can, according to Reonomy. That means not only meeting with them and digging into their financial records, but also getting a clear sketch of their long-term vision for how you will work together so that you can continually meet your goals.
The fact of the matter is that, just like everything else, there's rarely a one-size-fits-all solution to how your prospective tenants will want to deal with you as the property owner. Some may want to see you (or a representative) around the property on a regular basis. Others want to be left entirely to their own devices, and they'll call you if they need you. Just setting some baselines and ground rules for this kind of thing will help ensure you have a successful relationship.
Depending on the kind of commercial property you own, you're likely to appeal to some companies more than others. Parcel Pending advises that you talk with tenants about their plans for the company; are they growing quickly and therefore likely to want to expand operations or even move on from your property in a short period of time? Have they been treading water in terms of size but just needed a new facility? Getting such answers could help inform your decision on who to rent to.
Whether it's accessibility issues for certain kinds of tenants or the kind of security a company may need based on how they do business, you will definitely need to get on the same page about their requirements and expectations. No two companies are alike and you may have to make some changes to the property to meet their unique needs, and you should come to an agreement in advance on what would be reasonable.
If you're dealing with a long-established company, you might want to talk to them about why they're looking at a new property. Kitchener Clean notes that they could be bringing some considerations to the table that either make them ideal tenants, or could mean you mutually realise that the fit isn't quite right.
Again, you will need to come to a lot of agreements about various accommodations both of you need to make in order to set you both up for success. However, some prospective tenants may have a very different idea of what would be reasonable on this front than you do, and therefore you need to find one that has a similar vision for how much you will have to do to meet their needs.
Whether you're looking to start your commercial property ownership efforts or you're expanding an existing portfolio, you need a real estate expert on your side. At Ray White Surfers Paradise, we can guide you through the entire sales process and maintain a strong relationship with you afterward. Get in touch with us today to learn more about how we can help you.