Investing in real estate is one of the most proven ways to build long-term wealth. In an uncertain economy, where the future of traditional investments feels less certain than ever before, many people who want to secure and grow wealth are turning to commercial real estate properties to do just that. Overhead is relatively predictable and commercial real estate insurance provides protection of the investment that us unavailable for traditional investments. With property management companies available to take care of the day-to-day needs of commercial properties and the tenants therein, one of the few pieces of the puzzle the investor need be concerned with is employing successful strategies to secure commercial tenants. Below are 3 ways to have desirable prospective tenants tripping over themselves to fill out applications.
1. Go green. Purchasing a newer building can make this strategy nearly hands-off. In a time when more people than ever before are concerned about the impact that human activity has on the environment, advertising the environmental-friendly features of a commercial building is a clear way to stand out from the crowd. Target companies that are particularly concerned about maintaining or restoring an image as socially conscious for an easier sell and to secure the highest possible rent. Features to look for when making a purchase as well as to emphasize when advertising the building to prospective tenant include the following:
- A Building With A Favorable EPA Energy Star Score: This is directly correlated with a savings in energy costs.
- A Net Zero Energy Building: This means that a building generates both its own power as well as additional energy that can be sold to the surrounding area.
- A Leadership in Energy and Environmental Design (LEED) credential: Buildings with this credential are designed with an HVAC system that sucks fresh air into the building as well as filtering the air in interior rooms. This means improved air quality for everyone in the building and all of the health benefits that come with it. It also means more natural light, which has been directly correlated to fewer sick days and greater employee productivity in multiple studies.
2. Identify and advertise amenities in the vicinity. Take the time to discover and catalog amenities in the area that might provide added value for prospective commercial tenants and/or employees of those tenants. These might include public transportation, post offices, banks, coffee shops, restaurants and delicatessens or bodegas.
3. Provide and advertise as many shared facilities as possible. Depending upon what space is available in the building outside of the spaces to be rented to individual tenants, there are myriad possibilities for shared facilities than an investor can offer in a commercial real estate property. These might include the following:
- Conference Rooms: This is the time to get creative with space. A large lobby or interior room that is less desirable than others for any reason can be transformed into shared conference facilities that will add value for any commercial tenant. Investing in furniture and the most modern technology and equipment that a budget allows for make this amenity one that will attract businesses based on cost savings to the business alone.
- Basement Gym: While a basement in a residential building is likely to be used as a laundry room or storage for tenants, this space may be viewed as lost square footage to a commercial real estate investor lacking in imagination. Transforming this otherwise unused space into a gym for commercial tenants provides a way to for those tenants to give added value to employees at no additional cost to the tenants themselves. The possibilities are endless depending upon the amount that the property owner wishes to invest, with the potential for a luxury gym featuring showers and state-of-the-art equipment.
- Daycare Center: More businesses than ever before are offering flexible schedules, childcare reimbursement and other family related benefits working parents as part of a compensation package. By contracting with a childcare provider this is one way to add value to a commercial building that can be hand-off to the property owner aside from the investment he or she makes.
To talk about protecting any commercial real estate investment as well as how to help tenants protect individual businesses housed in any building, please contact us. Thank you.