The commercial property sector is on the upswing, especially retail, according to recent findings from the Brookings Institute. The vacancy rate is at a 5-year low, and the sector is stable. Now is an excellent time to explore opportunities to start (or grow) your commercial real estate portfolio in Mt. Laurel, New Jersey.
It's essential to have a data-driven plan for success before your first property purchase. Is the property the right size and type for your portfolio? Does it serve an immediate community need?
Importantly, once you attract a commercial tenant, you need the right lease renewal strategies to retain them. Constant turnover reflects a negative image of financial health which impacts the local economy.
Learn more about effective tenant retention strategies.
Invest In Commercial Property Maintenance
Tenants need well-maintained commercial spaces to manage their own businesses. It's vital to their customer service strategy and employee productivity. They expect to have prompt maintenance services; losing a day of business is detrimental to many small businesses.
One of the first steps any commercial property owner should take is to hire a property management company. Property managers oversee all aspects of maintenance.
They contract with the following local services:
- Commercial cleaning companies
- Repair companies
- Landscapers
- Electricians
- Equipment installers
Property managers also ensure commercial spaces are safe and up to code.
Businesses must be especially mindful. They're subject to strict OSHA guidelines, food safety laws, and more compliance rules. Businesses are also inspected by local agencies and must pass in order to stay open.
Therefore, it's crucial to have a prompt maintenance request protocol in place. Property managers must be immediately accessible. They also provide commercial tenants with online portals where they can submit maintenance requests and view the status of service calls.
Tenant Satisfaction Methods
Do you know how your commercial tenants feel about their lease and property conditions?
Asking for feedback goes a long way and can make all the difference in retaining a valuable tenant. You could ask directly during a meeting or prepare feedback forms for more tenants. You may learn the tenant wants new lease terms, property upgrades, or a parking lot.
Incentives go a long way, as well. Provide those upgrades in the lease, and offer a discount on the first month's rent to sweeten the deal.
Work with a property manager experienced in lease negotiation tactics. Remember, your lease must be written and reviewed by a commercial real estate lawyer; they should also be involved in negotiations.
Communication Matters
Remember to notify commercial tenants well in advance about their lease renewal.
Communicate regularly about lease deadlines, and try to make the rental agreement renewal process as easy as possible. This may involve integrating more paperless methods that allow tenants to renew their leases online with a digital signature.
Optimize Your Lease Renewal Strategies
Set a goal for increasing your lease renewal rate for the new fiscal year. Talk to a property manager about the above lease renewal strategies to discover more opportunities for growth and tenant satisfaction.
The team at PMI Garden State offers a full suite of commercial property management services designed for investors. Our team is committed to maximizing profitability while integrating the latest real estate technology.
Book an appointment to learn more about our process.
