#1 Determine Your Ideal Tenants
We’ve created a system that helps our clients pinpoint the perfect tenants for their commercial properties. The first step? Defining who you want as a tenant. If you own a shopping center, for example, you don’t want to attract tenants that mirror your existing ones. You certainly want to avoid tenants who can’t meet your rent requirements or those that might cause issues. In today’s world, you also need tenants who can withstand challenges like Amazon’s dominance or another potential COVID-19 disruption. So, who are the tenants you do want?
#2 Identify Tenants Interested in Your Space
Among the wide pool of prospective tenants, some will naturally be drawn to your property due to its location, visibility, anchor tenants, or other key features. But how do you discover these tenants? We’ve crafted a step-by-step process to identify and connect with the tenants that align with your goals. We use tools like Retail Lease Trac, ProspectNow, Facebook, and CoStar Tenant to track down those perfect fits.
#3 Find Tenants Who Can Afford Your Rent
While you may have found tenants that you want, it’s crucial to ensure they can pay the rent you need. Tenants carefully evaluate their rent-to-revenue ratios (RRR) before committing to a lease, which varies based on industry, location, visibility, and other factors. We assist our clients in determining which tenants can comfortably afford the rent they’re asking for, helping to minimize vacancy rates and maximize return.
The Three Rings Approach
We call this strategy our “Three Rings” process: finding tenants who meet your preferences, tenants who want to be in your space, and tenants who can afford your rent. The sweet spot—your ideal tenant—lies where these three circles overlap. Our method is designed to bring you to this intersection, where you’ll lease your vacant space to the best tenants, ensuring the value of your commercial property reaches its potential.
Relying solely on a “FOR LEASE” sign in the window of your vacant space means you’re likely leaving money on the table. Our leasing commissions usually equate to no more than 2-3 months of rent. If your property sits empty longer than that, you’ve already started losing out.
