Well, finding a good tenant for your retail or commercial space is a challenging task. The right type of retail space tenants will allow you to make more money, but if you have the wrong commercial tenant, then they can drain your resources, energy as well as time. Even though there are a lot of ways to locate a company to lease commercial retail space, you can’t go for all the methods.
If you are not a full-time real estate investor, then finding the right party and leasing your space will be a very time taking and painful tool. For example, screening out the prospects, dealing with phone calls, frequent site visits, and more can develop stress.
So, how to effectively and easily plan and lease your commercial retail space? Keep reading to explore more.
Take photos and list the property
First of all, take some quality photos of the commercial space. Create photos from different angles to let the viewers get a detailed insight into the property. Then you should upload the photos and property details to different property websites. Don’t forget to add all the required details, such as size, location, accessibility, directions, maintenance cost, total security deposit amount, and more.
Place quality signage on the space
Tenants can be quite concerned about how professional they are. So, don’t just use a sign that only shows the word “for lease.” You should place some other information about the commercial space. For example, type of space, size, and more. Don’t forget to add your contact number on the sign.
Hire a professional real estate brokerage
Commercial real estate agents are highly dedicated exclusively to selling and leasing the retail space. As such property doesn’t have a huge listing database, real estate brokers are the ideal option to find the franchises and businesses looking for a property. All the agents have some responsibilities to you, and they will make sure that you are getting the best deals. Besides, you don’t have to pay them until they offer a well-executed lease.
Conduct a telephonic screening
Once you list the property, you will start getting calls from prospective clients. Well, it is important to screen those calls to save your energy and time. So, here are some questions that you can ask them:
- Company’s identity
Explore the company and what type of services they offer. Try your best to know more about the history and current profile.
- Type of business
Understand whether the business is suitable for your retail space or not. Based on your requirements, you can choose between a factory, retail store, office, or warehouse.
- Duration of the lease
Whether you want to lease the property for 1 year, 5 years, or more. Make sure the tenant is ready for that.
Is the client capable of paying the security deposits, monthly rent, and utility bills on time?
- Operating hour
Ask them whether their businesses operate only from 9 to 5 or 24 hours.
If you are satisfied with the answers, you can invite the party for a face-to-face communication and property tour.
Don’t forget to create an agreement
Create an agreement and share the same with the tenant for verification. You should clearly mention all the required terms and conditions. Some crucial points that you should add in the agreement are:
- Execution date.
- Name of the property owner and address and tenant name.
- Address of the property.
- Date from which the lease period will begin.
- The total duration of the agreement.
- Yearly ren appreciation percentage and more.
If the tenant doesn’t have any obligation, you both can go on and sign the agreement.
You don’t have to lease your space to a large franchise only. Sometimes, you can look at small or medium businesses. After all, it will completely depend on the space you want to lease and whether your space meets their requirements or not. It has been seen that some brands prefer to choose large businesses or franchises to ensure regular payment of rent.
Well, that doesn’t mean that you should ignore other businesses. Just create a perfect lease agreement and lay down your terms and conditions clearly in the agreement. However, hiring a real estate agent can also work great.