3 Things to Know Before you Rent Your Commercial Building

When you’re in the market for a commercial building, there are numerous factors to consider before moving forward with your investment. Going into your purchase with a proactive strategy will help you in the long run when you begin eyeing the property that’s right for you. Please see below for 3 things you need to know before you rent your commercial building.

1.)    Price – make sure that you are priced competitively within your market. Be prepared for the fact that a tenant will likely be calling on several options. A qualified commercial real estate agent will help you set a price that is competitive. Although most brokers and owners will give the per square foot annual amount, if you are discussing directly with a tenant, be prepared to give the number in terms of monthly base rent, as calculation of rent may not be something they have a lot of experience in.  

2.)    Configuration – Tenants and landlords alike will both prefer spaces that are the closest fit to what they are looking for. This will minimize the amount of time and expense that goes into a build-out and often leads to a deal that is better for all. For example, does your tenant need 4-5 private offices, a breakroom, and two restrooms? Then it may not make sense to show them a space with an open floor plan. Understand what your tenant is looking for, and be prepared to either pass, deliver another space, or incur some additional expense in the form of rental abatement or a tenant improvement allowance to be competitive with other spaces in the area that match the configuration they are looking for.   

3.)     Marketing – Now that you have an idea of the price and the suite configuration, you need to get some eyes on it! A commercial broker will be able to post the information where thousands of people looking for commercial rentals. Several of these sites and cost-intensive, and unless leasing is a part of your day-to-day business, it can be hard to justify the expense. A broker can also help you to understand where to target your marketing, as to most likely reach the type of businesses that can utilize the space in its current or close to the current configuration. If you’d like to have your property in front of the most candidates, please consider reaching out to our team!