Once you’ve done all your research and acquired the “perfect” commercial real estate property, it should be easy to start collecting rent, right? In reality, finding the right tenant is equally as important as acquiring the right property. Without both, your great investment can be at risk.
Below are a few ideas that will give you a head start to finding your perfect tenant.
Industry Trade Advertisements
As part of the due diligence in acquiring your property, you considered the best uses for it. The next step is to place an advertisement in your target tenant’s industry magazine or local association. Researching the leading industry publications is easily done on the internet. A well-placed advertisement with great photos and customer traffic projections can yield competition for your space. However, make sure never to perform these actions without consulting a real estate attorney. Since every city or state has different property laws, you’ll need to put up advertisements that honor them. So go now to a real estate agent to avoid any complications in the future. This will make the whole process a lot easier for you.
Personal Experience
Use your contacts. Ask in your circles if anyone has a suggestion for businesses that are in your target market. By doing this, you may even get more ideas that broaden your target market. For example, if you think your property may be best suited to a barbershop, someone may suggest a great pet groomer you had not previously considered.
Don’t be afraid to hit the bricks yourself, especially if you have a favorite place. For instance, if you frequent a successful coffee shop by your home, talk to the owner. Perhaps they are interested in an additional location or can point you towards leads. Your entrepreneurial spirit can bring very lucrative results.
Local Commercial Real Estate Brokers
Enlisting a professional commercial real estate investment broker is a tried and tested way to find qualified tenants, as that is their business. These professionals will take your brief, perhaps enhancing it with their suggestions, and get to work. Be prepared to pay a portion of the lease value for this service, but quickly getting the right tenant in a market you may not be familiar with can be a wise investment.
Local Business Groups
Advertising in local business groups such as the rotary club or local chamber of commerce can introduce you to potential tenants with interests that match your own. Attend meetings or, better yet, join the groups in the communities where you have commercial real estate investment properties. Get involved. Building your solid reputation in a community can help with making contacts now and in the future.
Scan online listings
Never underestimate the internet. While placing an ad on Craigslist may not net you the dream client you are seeking, it can give you leads to different businesses seeking space. Look at various sites like Loopnet and CREXi to compare your property and score leads.
A building without a tenant is wasted property. Let people know your property is available. Create an eye-catching sign with key information and a contact phone number. You want to have just enough information to make the tenants come to you. Remember that a potential tenant may be driving around looking for the exact property you have.
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