Choosing a good commercial property tenant

If you own a commercial property, always keep in mind that its value is directly linked to the tenant or tenants you have occupying it. The issue of finding the best tenants possible can frequently become a challenge. It's a competitive market, and finding tenants who can commit to a long-term lease and follow through while being respectful of the property and amenable to your desired contract can be tricky. You have to be very aware of the market and what your competition may be offering, and stay ready to act as an excellent negotiator at a moment's notice

Types of commercial property tenants

There are many types of tenants, from those leasing for the first time to tenants who have been leasing for years. They may be seeking to:

• Contract premises for the first time
• Relocate or expand into larger premises
• Decide whether or not to renew an existing lease
• Learn more about leasing rates in the local market
• Be provided with an incentive to sign a lease

Decide which types of tenants you are most interested in, and lay out a campaign to attract those tenants. The goal should always be a stable long-term lease that will keep your commercial property generating revenue for years – or even decades – to come.

Attracting high quality commercial property tenants

High-quality tenants want high-quality premises. Look for ways to make your property attractive, whether that means sprucing up a single-occupancy space or adding amenities to a larger multi-occupancy building. Also think about your lease terms, and consider offering a variety of options to tenants: perhaps with a higher annual cost for a short-term lease and a lower rate per annum on a lease running 5-10 years or longer.

What should you look for in a commercial property tenant

Once you have some tenant applications, you can start winnowing through them to find the best tenant for your space. Look for the following attributes:

• Previous and projected business success and stability
• Excellent rental history and record (if you are not looking for first-time tenants)
• Desirable business profile that meshes with your vision for your property
• Likelihood of integrating with existing tenants and the feel of the occupancy
• Suitable, permitted use of the property
• Willingness to sign a lease that is favourable to you as the property owner

Once you've found a good tenant or group of tenants, work to keep them occupying your space by staying in close contact, ensuring your property is properly maintained, quickly addressing any problems and mediating disputes between tenants fairly and promptly.

Looking for a commercial property for single or multi-occupancy? Contact Ray White Surfers Paradise today to get leads on valuable properties in your area.