Commercial Furnished Rental Properties

In my 18 years in this business, I’ve witnessed various trends come and go. However, this current trend has some serious staying power. We’re noticing an increasing number of landlords and business owners venturing into furnished rentals, and it’s for good reason. It’s no longer just about putting some desks and chairs into an office space. We’re referring to creating complete, ready-to-use solutions that draw companies in left and right.

Key Takeaways

  • Furnished commercial rentals offer higher income potential and attract key tenant demographics.
  • Sustainability and adaptability are crucial factors in the success of furnished CRE properties.
  • Proper management and legal compliance are essential for maximizing ROI in this growing market.

Understanding the Market

Alright, let’s break this down. Who’s looking for these furnished spaces? Well, it’s a pretty diverse crowd:

  • Startups looking for flexible, ready-to-go offices
  • Corporate clients needing temporary project spaces
  • Small businesses wanting to avoid the hefty upfront costs of furnishing

The demand for furnished options is increasing as companies prefer the convenience and flexibility of avoiding the hassle of setting up shop from scratch.

Now, how does this stack up against traditional unfurnished properties? Let’s look at a quick comparison:

Higher upfront costs for landlordsLower initial investment
Higher rental incomeStandard rental rates
Shorter lease termsLonger lease commitments
Attracts diverse tenant poolAppeals to long-term tenants

As you can see, while furnished properties require a bit more elbow grease upfront, they can offer some serious perks in the long run.

Benefits of Offering Furnished Commercial Rentals

Let’s talk about why you might want to jump on this bandwagon. First off, higher rental income. I’ve seen landlords charge premiums of 15-20% above standard rates for furnished spaces. Not too bad, right?

But it’s not just about the money. Here are some other benefits:

  1. Attracting key tenant demographics: You’re opening doors to a whole new market of tenants who value convenience and flexibility.
  2. Reduced vacancy rates: Furnished spaces often lease faster, keeping your property occupied and profitable.
  3. Competitive edge: In a crowded market, offering a turnkey solution can make your property stand out from the pack.

I’ve assisted clients in turning struggling properties into highly sought-after commodities simply by furnishing them.

Challenges and Considerations

Now, I wouldn’t be doing my job if I didn’t mention some of the hurdles you might face. Let’s keep it real:

  • Initial investment costs: Quality furniture and equipment don’t come cheap.
  • Maintenance and upkeep: More stuff means more things that can break or wear out.
  • Increased tenant turnover: Shorter leases can mean more frequent vacancies.
  • Insurance and liability: You’ll need to consider additional coverage for all that extra property.

It’s not all smooth sailing, but in my experience, the benefits often outweigh these challenges if you plan carefully.

Setting Up a Furnished Commercial Rental Property

Okay, so you’re sold on the idea. Great! But where do you start? Here’s a quick rundown:

  1. Select appropriate furnishings: Think durability meets style. You want pieces that can withstand daily use but still impress potential tenants.
  2. Create a cohesive aesthetic: Consistency is key. A well-designed space can command higher rents and attract better tenants.
  3. Integrate technology: High-speed internet, smart building features, video conferencing equipment – these are no longer luxuries, they’re expectations.
  4. Balance functionality and style: Remember, these spaces need to work as hard as they look good.

Pro tip: Consider hiring a commercial interior designer. Their expertise can be invaluable in creating a space that truly stands out.

Commercial Furnished Rental Properties

Sustainability and Energy Efficiency in Furnished Rentals

Now, let’s talk about going green. Sustainability isn’t just a buzzword – it’s becoming a major selling point in commercial real estate. Here’s how you can incorporate it:

  • Use eco-friendly furnishings: Think recycled materials, low-VOC finishes, and sustainably sourced wood.
  • Implement energy-saving features: LED lighting, programmable thermostats, and energy-efficient appliances can significantly reduce operating costs.
  • Consider smart building technologies: These can optimize energy use and appeal to tech-savvy tenants.

Remember, marketing the sustainability aspect of your property can attract environmentally conscious tenants and potentially command higher rents. It’s a win-win!

Marketing Strategies for Furnished Commercial Rentals

You’ve got this amazing furnished space. Now, how do you get the word out? Here are some strategies I’ve seen work wonders:

  1. Target corporate clients: Reach out to HR departments and relocation specialists. They’re often on the lookout for turnkey solutions.
  2. Leverage online platforms: List your property on commercial real estate websites and use social media to showcase your space.
  3. Highlight unique selling points: Whether it’s your prime location or your state-of-the-art conference room, make sure potential tenants know what sets you apart.
  4. Network, network, network: Build relationships with local business organizations and attend industry events. Personal connections can lead to great opportunities.

Don’t be afraid to get creative with your marketing. Virtual tours, professional photography, and even themed open houses can help your property stand out in a crowded market.

Pricing and Financial Considerations

Now, let’s talk money. Pricing a furnished commercial rental can be tricky, but here are some factors to consider:

  • Market rates: Research what similar furnished spaces in your area are charging.
  • Additional costs: Factor in the cost of furnishings, maintenance, and potential replacements.
  • Lease structure: Consider offering flexible terms, like month-to-month options or shorter lease periods.
  • Tax implications: Don’t forget to consult with a tax professional about potential deductions and depreciation benefits.

When renting out a furnished space, charging a premium is possible, but it’s crucial to strike a balance. If the price is set too high, finding tenants might be a challenge. On the other hand, setting the price too low means leaving money on the table.

Property Management Best Practices

Managing a furnished commercial property requires a bit more hands-on approach. Here are some best practices:

  1. Regular maintenance: Set up a schedule for cleaning and inspecting furnishings and equipment.
  2. Inventory management: Keep detailed records of all furnishings and have a replacement plan in place.
  3. Tenant communication: Be proactive in addressing any issues or concerns.
  4. Use property management software: This can help streamline operations and keep everything organized.

Trust me, staying on top of these details can save you major headaches down the road.

Now, I’m not a lawyer, but I’ve learned a thing or two about the legal side of furnished rentals:

  • Understand local zoning laws: Make sure your property is zoned for your intended use.
  • Draft comprehensive lease agreements: These should clearly outline responsibilities for furniture and equipment.
  • Address liability issues: Consider who’s responsible if a tenant damages furnishings.
  • Stay compliant with fair housing laws: These apply to furnished rentals just as they do to unfurnished ones.

When in doubt, always consult with a legal professional. It’s better to be safe than sorry!

The commercial real estate market is always evolving, and furnished rentals are no exception. Here’s how to stay ahead of the curve:

  • Keep an eye on economic indicators: These can help you anticipate changes in demand.
  • Embrace new technologies: Whether it’s virtual reality tours or AI-powered building management systems, stay open to innovation.
  • Be flexible: Be prepared to adjust your offerings based on changing tenant preferences.
  • Plan for disruptions: Have contingency plans in place for market downturns or unexpected events.

Keep in mind, that adaptability is essential in this industry. The most successful landlords are those who can pivot when necessary.

Commercial Furnished Rental Properties


What types of businesses are most likely to seek furnished commercial rentals?

Startups, project-based teams, and businesses needing temporary spaces often seek furnished rentals for their flexibility and convenience.

How can I determine the right rental rate for my furnished commercial property?

Research similar properties in your area, factor in your additional costs, and consider offering competitive rates initially to attract tenants.

What are the essential amenities to include in a furnished commercial rental property?

High-speed internet, comfortable and functional furniture, and well-equipped meeting spaces are typically essential. Consider also adding tech amenities like smart boards or video conferencing equipment.

How can I minimize damage to furniture and appliances in a commercial rental setting?

Regular inspections, clear guidelines in the lease agreement, and choosing durable, commercial-grade furnishings can help minimize damage.

What are the tax implications of offering a furnished commercial rental property?

You may be able to deduct the cost of furnishings and enjoy depreciation benefits. However, always consult with a tax professional for advice specific to your situation.


Remember, offering furnished options in the commercial real estate space isn’t just a trend – it’s a strategic move that can set you apart in a competitive market. Yes, it requires some upfront investment and ongoing management, but the potential rewards in terms of higher rental income and a broader tenant base can be substantial.

As with any business decision, it’s all about doing your homework, understanding your market, and being willing to adapt. And hey, if you’re feeling a bit overwhelmed, that’s okay! That’s what professionals like me are here for.

Ready to explore the world of furnished commercial rentals? Don’t go it alone! Schedule a consultation with me, Mike Tolj, and let’s discuss how we can maximize your property’s potential. With 18 years of experience under my belt, I’m here to guide you through every step of the process. Let’s turn your commercial property into a furnished success story!

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