With around 46.6 per cent of employees working from home, many businesses opted not to renew their leases when the pandemic started. The situation caused many commercial property owners to have a smaller income after many companies opted to close their physical offices.
After the situation improved, many offices reopened. And with the reopening of offices, many business owners are now searching for a new place to lease. For commercial property owners, this can be an opportunity to increase their income. Here are some tips on how commercial property owners can make the most out of this situation:
Rent out unused space.
It should consider renting it out to other companies if the property owner has extra space in its commercial property. This can help increase the property’s income and be a great way to bring in some extra money. There are a few things that a business should keep in mind when renting out its space.
The first thing to do is ensure the space is ready for tenants. This means that it should be cleaned up and in good condition. The space should also be adequately furnished, if necessary. It is also essential to ensure the space is accessible and convenient for tenants.
Another vital thing to keep in mind when renting out space is advertising. The business should make sure that potential tenants know about the available space. This can be done through online listings, word-of-mouth, or even signage on the property itself.
Renting out unused space can be an excellent way for businesses to bring in some extra income.
Invest in energy-efficient upgrades.
Commercial properties can increase their incomes by making energy-efficient upgrades. These upgrades can include installing new windows and doors that close tightly, adding insulation, and replacing old heating and cooling systems with newer, more efficient models. These upgrades can save the property owner money on their energy bills, which can add up over time. In addition, many utility companies offer rebates or other incentives for making energy-efficient upgrades, so it’s a win-win situation for both the property owner and the environment.
Owners can use these upgrades to promote their properties in the market. Businesses will be keen on renting spaces where they can save on utility costs. Also, green buildings are in high demand these days, so being energy-efficient can help a property stand out from the competition.
Property owners should also work with a reliable Electrical Installation Condition Reports (EICR) provider. Getting the reports are essential to show potential tenants that the building is safe to use. It will also give the owner peace of mind, as they would know that the wiring and other electrical components in their property are up to code.
Offer incentives for long-term leases.
Leasing agents face a constant challenge in trying to keep their commercial properties rented out. While offering incentives for signing a new lease is always a tempting proposition, providing incentives for long-term leases can be even more essential. By doing so, you can not only encourage tenants to commit to a longer lease, but you can also help ensure that your property remains fully occupied.
There are several reasons why offering incentives for long-term leases can benefit landlords and tenants. For it can help to guarantee a steady stream of income. At the same time, tenants can enjoy the security of knowing that their lease is for a longer period. Additionally, by a long-term lease, tenants may be able to secure lower rates than they would otherwise get if they signed a shorter one.
So if you’re a landlord or property manager looking to attract new tenants, consider offering some incentives for signing long-term leases. You may be surprised at how this strategy can be in filling up your property’s vacant spaces!
Diversifying the tenant mix
Commercial real estate investors know that having a diversified tenant mix is vital for the overall success of their properties. By having a mix of businesses, retailers, and service providers in their buildings, investors can ensure a steady flow of income, even during tough economic times.
A well-diversified tenant mix also helps to attract new tenants and keep existing ones in place. Tenants want to be in buildings where they know their neighbours will be compatible and provide them with the necessary services and products. A diverse tenant mix can help to create this type of environment.
Investors who are looking to increase the income potential of their commercial properties should make sure to focus on diversifying their tenant mix. This will help to ensure that their properties are always generating income, even when the economy is struggling.
Increasing the income of commercial properties is essential to ensure they remain profitable. By taking some time to review your options and develop a plan, you can make small or large changes that will have a significant impact on your bottom line!