The pandemic saw many companies across the country closing their doors and sending employees home to work remotely. For commercial property owners, this decreased revenue as businesses moved out or downsized their operations. However, there are still ways to increase commercial property revenues even in these challenging times.
But with the increasing number of businesses reopening, property owners have the opportunity to recoup their losses. Here are some tips on how to increase commercial property revenues:
Review your rental rates.
Commercial property owners should start by reviewing their rental rates. If you have not increased your rates in a while, now is the time to do so. Many property owners are hesitant to increase rates for fear of losing tenants. But with the market rebounding, you will be able to find new tenants willing to pay higher rates.
In addition, if you have vacant units, now is the time to increase rents to market rates. This will help you attract new tenants and increase your income. You should also consider offering incentives, such as a free month of rent, to attract new tenants.
Ensure your property is well-maintained.
It is important to keep your property in good condition to attract and retain tenants. This includes ensuring the common areas are clean and well-lit, the landscaping is trimmed, and the parking lot is free of debris.
You should also regularly inspect units to ensure they are in good repair. If tenants see that you are maintaining the property, they will be more likely to renew their leases. Property owners should also look for a reliable company offering commercial Energy Performance Certificate (EPC) services. The service allows them to make the necessary improvements to the energy efficiency of their properties. An energy-efficient property appeals to tenants looking for ways to reduce expenses.
Diversify your tenant.
Having a greater diversity of tenants can increase your chances of maintaining high occupancy rates. While having large tenants can provide stability to your property, it could spell disaster for your revenue stream if they leave. By having several smaller tenants, you create a buffer against any potential vacancies.
Additionally, don’t be afraid to mix up the type of tenants you have. A good mix of retail, office, and residential tenants can create a lively and bustling environment that will attract potential new tenants. A diverse tenant mix can also help you weather any potential economic downturns. For example, if the retail sector is struggling, you will still have income from your office and residential tenants.
Offer additional services and amenities.
One way to increase commercial property revenues is by offering additional services and amenities to tenants. This could include a fitness center, a business center, or a conference room. These amenities can attract new tenants and encourage existing tenants to renew their leases.
You can also generate additional income by providing valet parking, concierge service, or on-site management. You can also offer a shuttle service for tenants who have employees living in surrounding neighborhoods.
By providing these services, you can make your property more attractive to potential tenants and increase your income. Tenants are willing to pay for these services and can help you increase your bottom line.
Promote the property to new tenants.
Commercial property owners and managers know that attracting new tenants is one of the most important aspects of generating revenue from their property. There are many ways to promote a property, but some methods are more effective than others. Below are some tips for promoting a commercial property to new tenants.
- Use online resources. The internet is a great tool for reaching out to potential tenants. Use online listings platforms to list your property. Make sure to include plenty of photos and information about the property and its amenities.
- Utilize social media. Social media platforms like Facebook, Twitter, and Instagram are great ways to reach out to potential tenants. Use these platforms to share information about your property and its features.
- Work with a real estate agent. A good real estate agent will have a network of potential tenants they can reach out to on your behalf. They can also help you market your property and negotiate leases.
- Host an open house. An open house is a great way to show off your property to potential tenants. Make sure to advertise the event and promote it through your marketing channels.
Update your property.
The pandemic highlighted the importance of health and safety for tenants. As a result, many tenants are looking for properties that meet the latest health and safety standards. If your property needs some updates, make sure to do so before you start marketing it to potential tenants.
Adding new features or improving your property can also help attract new tenants. If you want to generate more revenue from your property, consider making some updates to make it more attractive to potential tenants.
Following these tips can increase commercial property revenues and make your property more attractive to potential tenants. By diversifying your tenant mix, offering additional services and amenities, and promoting your property, you can generate more income from your commercial property.