Here's how you can maximize your gains by thinking outside the box in commercial leasing.
In the competitive world of commercial real estate, thinking outside the box in leasing strategies can significantly enhance your financial success. Whether you're a landlord looking to attract tenants or a business seeking the perfect space, approaching commercial leasing with creativity and flexibility can lead to mutually beneficial arrangements, increased occupancy rates, and optimized revenue streams. By considering unconventional lease structures, exploring diverse tenant mixes, and leveraging technology, you can uncover opportunities that traditional leasing methods may overlook. It's about finding innovative solutions that align with market demands and the unique characteristics of your property.
When it comes to commercial leasing, one size does not fit all. Flex leases offer a customizable approach that can be particularly attractive to startups and small businesses. These leases combine office and warehouse space or allow tenants to adjust their square footage as their business needs change. By offering flexible terms, you can fill vacancies faster and retain tenants longer, as they won't need to relocate to scale up or down. This adaptability can set your property apart and create a steady income flow.
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Using flex leases on a part of your building also provides more immediate income than waiting for larger direct lease tenants with longer lead times. Another benefit can be the ability to provide larger direct tenants with growth space in the medium to longer term which may well be the reason you retain that tenant at that future point in time.
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Maximize your gains in commercial leasing by creatively repurposing spaces to cater to diverse needs, offering flexible lease structures that adapt to tenant demands, and providing a suite of value-added amenities that make your properties irresistible. Forge strategic partnerships to expand your reach and use targeted marketing to attract niche markets. Leverage cutting-edge technology to streamline processes, ensuring an enhanced and seamless tenant experience. All the Best
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In commercial leasing a thorough knowledge of both the landlord's position and the tenant's position is key to maximizing the gains the parties experience from a new commercial lease. As they say in negotiations 101 "don't divide the pie until after you create a bigger pie" which is what this additional knowledge will do. For example, many landlords are tight on cash flow right now making extensive TI too costly to accept. However, the landlord would appreciate a new tenant and the upgraded space. You may be able to get a deal where the tenant pays all of the up front TI and then only pays rent (no CAM) for 6 years. Certainly a win/win
Diversifying your property's use can be a game-changer. Mixed-use developments that combine retail, office, and residential spaces cater to a broader audience and create a vibrant community. This can increase foot traffic for retail tenants while providing convenient amenities for office workers and residents. By creating a mini-ecosystem, you enhance the appeal of your property and encourage longer leases, as tenants benefit from the built-in customer base and lively atmosphere.
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Within the mixed use projects I've spearheaded, planning for one or two 'anchor' tenants early on can help formulate a leasing strategy for the subsequent surrounding tenancies. These anchor tenants are often the foundational heartbeat of the precinct. With larger projects, careful consideration needs to be given to major aspects such as: - Access: Whether driving or public transport, what allowances are there for getting in/out - Parking: Factor in easy to access designated parking areas, additionally considering pram, electric chargers etc - Wayfinding/Flow: How do you get from point A to B - consider the different paths people would take e.g. someone working on site, as well as visiting - Future Scope: Plan for future changes/demands
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There was a big push for mixed-use developments years ago, and while there were successes, there was also plenty of failures as well. So, I believe that it really helps if the different components of the mixed use development can stand on their own. For instance, the retail component doesn’t need rely on all of their business to come from the residential on-site. And for retail, there really needs to be a larger retail tenant driving traffic (i.e. grocery store, junior anchor soft goods store, etc.) Otherwise, small shop retail won’t survive, but a variety of restaurants will have a better chance…..especially if there is a good base of residential surrounding the development.
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I love the idea of leasing residential units to a ground floor commercial tenant in a mixed-use building. It makes the commercial tenant a part of the community; holds them accountable to issues that affect their neighbors (excessive music/noise from a restaurant/bar, garbage pick up, etc.) , because it affects their neighbors and where the commercial tenant lives; and helps small businesses get support from the local community. I've seen this done with mom & pop pizza shops, bodegas, restaurants, and art studios throughout New York City.
Embracing technology can revolutionize your leasing approach. Implementing smart building systems and high-speed internet can attract tech-savvy tenants who value connectivity and efficiency. Offering virtual tours and online lease management can streamline the leasing process, making it easier for prospective tenants to envision themselves in your space and for current tenants to manage their leases. This tech-forward approach can differentiate your property in a crowded market.
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Augmenter la valeur ajoutée des locaux en intégrant des infrastructures pour automatiser le chauffage, la climatisation, l'éclairage, et la sécurité, ce qui peut réduire les coûts opérationnels et améliorer l'efficacité énergétique et en mettant en place des systèmes de gestion qui permettent aux locataires de payer leur loyer, de signaler des problèmes et de réserver des équipements communs via une application ou un site web.
Today's consumers and employees seek experiences, not just transactions. By curating an experience-focused environment with unique design elements, community events, or wellness programs, you can attract businesses that prioritize employee satisfaction and customer engagement. This strategy can lead to longer lease terms, as tenants will be more inclined to stay in a space that aligns with their brand and culture, which ultimately contributes to their success—and yours.
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Today's consumers and employees seek experiences, not just transactions. Creating experience includes accounting, acquisition, data and analytics, finance, legal, project management, and renovation in the commercial estate. Once you have the system put in place you’re able to create satisfaction and lifelong loyal customers.
Sustainability is no longer a niche interest; it's a business imperative. Green leasing, which includes terms that encourage energy efficiency and sustainable practices, can attract environmentally conscious tenants and reduce operating costs. By investing in energy-efficient upgrades and promoting green initiatives, you can position your property as a leader in sustainability, making it more attractive to a growing segment of the market.
The demand for creative office spaces is on the rise as companies seek environments that inspire innovation. By converting traditional offices into open, collaborative spaces with unique features like rooftop gardens or art installations, you can cater to this demand. These spaces often command higher rents and attract a diverse array of tenants, from tech startups to creative agencies, who are looking for more than just a place to work—they're looking for a place that reflects their creative ethos.
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