Are you thinking about moving into the commercial real estate space?
Your first step is to dive into the latest statistics to find opportunities. For example, multifamily buildings perform well. You also have retail storefronts, office buildings, warehouses, and the hospitality sector.
Location is key.
Ask yourself if the location is positioned to attract the right tenants, foot traffic, and media exposure. These qualities create a strong foundation for property performance optimization.
Here are a few more tips to help you move forward.
Hire a Commercial Property Management Company
You can't optimize for performance without an experienced property management company. Commercial properties come with even more logistics and challenges than residential homes.
It helps to work with the same company from the start. These companies have commercial realtors who help find properties with the most potential.
Once you've bought a property, the same company will help with the following:
- property maintenance
- tenant procurement
- tenant management
- marketing (and rental listing)
- financial accounting
These broad categories house several processes and strategies. Let's take a closer look at them now.
Property Maintenance and Upgrades
A rundown property will not attract the right tenants for the property. It also doesn't reflect well on your property investor portfolio. Your properties must be able to pass inspection.
Property management companies specialize in quality maintenance. It goes beyond cleaning. A commercial property manager will install all necessary upgrades.
Important upgrades include:
- new flooring (hardwood, carpeting, etc.)
- the latest appliances
- HVAC systems
- window replacements (and treatments)
- electrical rewiring
- exterior and interior painting
- commercial roof installation
- lobby remodeling
The above upgrades improve client and customer experiences. Good experiences result in 5-star reviews, customer retention, and word-of-mouth marketing.
Tenants don't have to worry about asking for maintenance and upgrades, either. For example, PMI of Fairfax has online portals that let commercial tenants submit maintenance requests. Property managers also have reliable lines of communication, including phone and email.
The above points contribute to better tenant relations, increasing your profits.
Tenant Relations and Property Performance Optimization
Vacant properties don't generate profits. It's imperative to keep tenants in your properties. However, you don't want to end up in a turnover cycle.
Tenant turnover is also costly. It forces you to invest in more marketing, tenant procurement, and move-out expenses.
Think about the types of problems (or challenges) that lead to turnover. If those issues are within your control, you need a better lease renewal strategy.
Incorporate incentives that encourage tenants to stay.
- discounts on the first three months of rent
- advantageous partnerships with local businesses
- free upgrades with every lease renewal
- discounted marketing services
Remember to stay engaged with tenants. Initiate discussions on how to improve sales and customer acquisition. It's a win-win.
Look for local businesses you can partner with to improve the tenant experience. Partnering with print and signage companies is a great idea. These partnerships also bring more business into the community.
Create a Real Estate Optimization Strategy
Start by consulting a commercial property management company. PMI of Fairfax is standing by. We're dedicated to property performance optimization and have the tools needed to get there.
Remember the value of maintenance, upgrades, and excellent tenant relations.
Book your consultation today!