Every investor, owner and developer’s desire is to fill a building and have it become profitable. For this reason, the hunt for commercial tenants often begins before a particular Orange County building is even completed, if it is a new development. The problem sometimes lies in finding that last commercial tenant to bring occupancy to 100 percent.
It may help to look to the other tenants since they may know of someone looking for a space. If a property owner provides some sort of incentive to bring in another tenant, filling vacant spaces could be a thing of the past. An incentive could involve a monetary break on the rent one month or a cash reward. A particular building’s tenants may appreciate something else as a reward for bringing in a new tenant as well. It just depends on the circumstances, but money is often a sufficient reward.
It may also help to make renting in a particular location more appealing. Everyone loves free stuff, and that includes prospective tenants. Offering certain amenities such as free WiFi for a year or waiving a security deposit may make a property more attractive. Move-in specials can be tailored to the needs and desires of a particular tenant, especially if they do not create a significant hardship for the property owner.
These are just two of the ways that property owners can attract a commercial tenant. Other strategies may work better depending on the type of space. In any case, once a potential tenant is found, the lease negotiation process begins, and it may be a good idea to ensure that the investor, owner or developer’s interests and rights remain protected. Reaching 100 percent occupancy for a building here in Orange County may be the goal, but it should not be at the expense of relinquishing certain protections.