How to Find Retail Tenants in a Volatile Market
The growing shift in people’s preference to work from home and the ever-expanding online shopping option with free deliveries has led to the closure of many retail stores.
Real estate experts continue to predict the further decline of retail store leasing if property owners don’t reconsider how they do business with their tenants. In this volatile market, landlords must rethink how they find retail tenants and the type of lease they offer.
Today we’ll look at four methods for finding tenants for commercial property or how to find tenants for office space.
How To Find Tenants For Commercial Property
Finding retail tenants can be challenging in a volatile market. The demands from retailers are changing, and the conditions they bring to the table may leave your investment unpredictable. So, how do you find retail tenants without putting your investment at risk?
#1: Canvass For the Right Retail Store to Suit your Property
The retail tenant you want in your space should provide a track record of successful occupancy.
If you already have occupancy in some spaces, you need to focus on finding tenants for vacancies that complement the businesses already occupying the space. Find the crucial categories missing and plan to approach those retail owners.
Ask yourself the following questions:
- What retail business suits the vacancy?
- How will they complement existing retail businesses?
- What kind of customers or clients will be attracted to the property?
It’s essential to have diversity in your property to balance and create synergy between impulse-oriented stores like clothing stores, snack shops, or destiny-oriented stores like theaters and restaurants. Having both store types increases the likelihood of finding a new retail tenant to benefit from the relationship that variety adds.
#2: Contact the Potential Retail Tenant
Once you’ve researched the type of tenant you want, what a good tenant looks like, and where to find them, plan to contact them directly. In retail leasing, waiting for the tenants to find you won’t work. You have to go out and talk to the owners of the ideal store you want on your property.
Ask them about:
- Current tenant situation
- How their current location is working for their business
- Any future goals they have
- The changes they anticipate
Finding out this information will help you improve your strategy. You’ll be in a better position to offer the retail tenant what they want. They’ll also know you understand their goals and are concerned about their growth which will put you in a positive light in their eyes.
Use this approach on all the potential retailers you would like in your vacant space. Where the store owner isn’t available, ask for their contact and the one in charge of opening new stores. Remember to leave your contact information and an irresistible leasing brochure.
#3: Plan for the Big Meeting and Offer Value
You’ll need to follow up with the retail stores that have shown interest. Your goal is to have them visit the property and see the potential they have in your location. Once they’ve booked a meeting, find out what you can about:
- The sales information on the company stores
- The lease terms they’ve received in other locations
- The potential your property’s location has for them
- Figures of the projected traffic at your location
The more prepared you are, the higher your chances of impressing them. Remember to schedule the site visit when the traffic is relatively high—during the weekend or weekday lunch and evening.
Ensure you follow up with the potential retail tenant by making yourself and your property stand out from all the offers they may have received. One way of standing out is to use a property management software that shows how you manage your properties effectively and professionally.
#4: Hire a Commercial Real Estate Agent
Looking for a suitable retail tenant can be exhausting. Sometimes the best option is to look for an experienced real estate agent to do it for you. An agent is an expert at getting the right tenant in the right space. Meet with different agents to find the best one and share your goals for your property. They find tenants for all types of vacancies, including residential, commercial, industrial, and educational spaces.
An excellent agent will have your best interest at heart and put effort into getting you the best tenant at the most reasonable lease terms. The benefit they’ll bring surpasses the expenses you’ll encounter if you have multiple vacant units.
Ready to Up Your Game to Attract Retail Tenants?
A retail tenant will take you more seriously if you explain to them that you manage your property using property management software. This software enables effective management of day-to-day running of the premises and addresses any tenants’ concerns more efficiently.
Schedule a demo today and increase your chances of finding the right retail tenant for your commercial property.