Commercial Property isn't Leasing – Know All Common Reasons
Finding a proper tenant for your vacant commercial estate is a stressful job. What happens if the commercial property that you have purchased for earning revenue remains vacant for a longer period? Of course! You suffer heavy losses. Your investment becomes a liability and headache. Don't worry. Investigate the reasons behind it. The best suggestion is to hire a good commercial real estate agent to help you in dealing with these problems.
GW Partner's commercial real estate in Austin out lists some reasons that may keep tenants away from your estate. Overview these points and find out issues that may be creating a hindrance to getting the best tenant.
Pricing
Proper pricing of commercial properties as per the market rate is essential for quick leasing of the property. If your property is priced too high, tenants will avoid viewing it in the first instance itself. Thus, you may lose out on the best deals. Also, if the property is priced too low, then it would create a doubt in the minds of tenants about the credibility of the property.
Recommendation: Good commercial property management has an in-depth knowledge of current property rates. They will help you in pricing the property keeping in mind the competitive market rates of your location. You can also refer to articles mentioning the asking rental rates in different areas.
Publicity
What if people are not aware that you have let your property for lease? Listing of properties on different websites is essential for attracting tenants. If your leasing agent has not listed your property on major listing sites then the tenant representative might not bring tenants for property viewing. This will keep your property vacant for a longer period.
Recommendation: Ensure that your commercial real estate agent has listed your property on all major sites. Co-Star is one of the major sites that pop up instantly during the property search. Also, updating flyers and email campaigns is a good way of promoting the property for leasing. A good commercial agent is also in direct contact with the tenant representative. They can inform them about your property through personal emails. Along with advertising, offering tenant rep incentives can result in quicker occupancy of the property.
Structure and Amenities
An up to date property with a strong foundation attracts tenants in first viewing itself. Such properties yield the best and quicker deals. A property that is in bad condition and requires renovation remains vacant for a longer period. Also, lack of amenities creates a hindrance to the leasing of property.
Recommendation: if your property is worn out consult your commercial property management. They will guide you about renovations beneficial for leasing the property. Commercial real estate agents are also aware of the comments that the tenants might have given while property viewing. Thus, they can guide you about the basic renovation that can enhance the leasable value of the property. The basic renovation includes painting the lobby, waterproofing, and enhancing the landscaping. Also, adding amenities such as a parking area, tenant lounge can be a part of the renovation for quick leasing of property.
Negative Views and Location
Properties having a bad reputation, unfortunately, cannot be leased easily. Property has a bad reputation due to construction issues, bad property management, or the incidence of accidents during construction. Also, properties located in remote areas and not easily accessible to schools, market areas, day to day utilities, and road and railway connections are not easily leased. Nowadays tenants prefer open office layout to hard-wall offices.
Recommendation: You can re-promote your property under a new name and branding to remove the negative stigma attached to the property. Proper marketing tools can clear the doubts from the minds of the tenant and help in the leasing of property.
If location is the issue then it is difficult to change. But you can still lease your property with attractive renovations and adding modern amenities to your property. Also, you can compromise by pricing the property a little lower than the market rate. This will help in the quick occupancy of your vacant space.
Conclusion
Hiring the right property management company can help you in fixing the above issues. They play a major role in leasing your property as they are in regular contact with tenants.
For leasing of properties in Austin, hire GW partners. We have a team of expert leasing brokers. We have leased hundreds of properties in the last decade.