If you’re a commercial property owner, figuring out how to find tenants for rental property should be one of your top priorities as a property investor or owner. After all, without tenants, you won’t have any income from your property. Finding ideal commercial tenants can be tough, but it is critical to the success of your properties, but it doesn’t have to be. Below I go over my top 25 effective ways to find the best tenants for your commercial property investment.
Key Takeaways
- Finding suitable tenants is vital for commercial property investment success and generating income.
- Leveraging online platforms, hiring commercial real estate brokers, networking, and utilizing email marketing are effective strategies for reaching potential tenants and maximizing visibility.
- Offering flexible lease terms, shared amenities, and referral rewards can make your commercial space more appealing to potential tenants, leading to long-term tenant retention.
Table of Contents
#1 List Your Commercial Space Online
The first step to finding tenants is to list your commercial property online. Several different websites allow you to list your property, including Loopnet, Crexi, Property Shark, Craigslist, and more. Be sure to include plenty of photos and detailed information about your property.
To make the most of your online listings, check out our guide on Optimizing Property Listings for Maximum Exposure.
These websites allow users to search by a variety of different criteria, such as location, price, square footage, and more. By listing your property on these websites, you’ll ensure that it’s seen by a large number of potential tenants. Be sure to include all the relevant information about your property.
Include photos and detailed information about the property, such as:
- Square footage
- Type of business that would be a good fit for the space
- Include any special features or amenities
- Additional details about the property type
#2 Hire A Commercial Real Estate Brokerage Firm
If you’re not comfortable listing your property yourself, you can hire a commercial real estate broker. The broker will help find commercial space for rent that matches your requirements and list your property on their website and the major listing websites. They will also actively market your property to potential tenants.
Hiring commercial real estate brokers is a good option if you don’t have the time or knowledge to market your property yourself. They can also provide you with advice on how to market your property and what type of tenants you should be targeting. They also have a good idea of how other properties in the area are being marketed and what type of tenants they are attracting.
However, it’s important to note that these firms typically charge a commission, which is typically a percentage of the lease value. When considering whether or not to hire a commercial real estate broker, be sure to factor in the cost of the commission.
#3 Networking
Business networking is a highly effective approach for finding tenants for your commercial property. Leveraging your professional connections can significantly enhance your business opportunities. Here are some relevant statistics that highlight the impact of networking:
- 70% of people report that they found their current job through networking, demonstrating its importance in career advancement.
- 85% of jobs are filled through networking rather than traditional job boards, indicating that personal connections often lead to better opportunities.
- Employee referrals account for 40% of all hires, despite making up only 7% of applicants. This statistic emphasizes how valuable referrals are in the hiring process.
- Those hired through referrals are four times more likely to be hired compared to candidates from other sources, highlighting the effectiveness of personal connections in securing positions.
To maximize your networking efforts, consider informing your contacts about available leasing opportunities. You never know when someone might be looking for new space for their business. Additionally, attending local business events can help you expand your network and meet potential tenants.
Recommended Networking Events
- Chamber of Commerce Mixers: These events provide a relaxed atmosphere for professionals to connect and build relationships.
- Business Association Meetings: Regular meetings organized by local associations facilitate networking among various industry professionals.
- Trade Shows: Participating in trade shows allows you to showcase your property while connecting with potential tenants and other businesses.
When attending these events, bring plenty of business cards with information about your property. This proactive approach can help you stand out and make a lasting impression on potential clients. By focusing on building genuine relationships, you’ll be better positioned to attract tenants and grow your business.
#4 Email Marketing
Email marketing is a great way to reach a large number of prospective tenants quickly. 87% of marketers said email marketing is critical for their company’s success. You can use an email marketing service, such as Active Campaign, or Mailchimp, to create and send professional-looking emails. Be sure to include information about your property, such as photos, square footage, and rental price.
You can also use email to keep in touch with current tenants and ask them for referrals. If you have a good relationship with your tenants, they may be willing to help you find new tenants.
In addition to emailing prospective tenants, you can also email local businesses that may be looking for a new space. Be sure to include information about your property and why it would be a good fit for their business.
#5 Place High-Quality Signage On The Property
If your commercial property investment is visible from the street, be sure to place high-quality large (4’x4′ if possible) signage on the property. This will help attract the attention of potential tenants who are driving by.
According to Custom Neon, their polls found that high-quality signage greatly benefits businesses by attracting clientele, cultivating brand identity, and improving public perception.
Your signage should reflect your professionalism. It should display your company logo and the words “For Lease.” You can also include your phone number and website address. If you have a broker, you can include their information as well.
By adding this information, you strengthen the importance of having high-quality signage and the benefits it can bring to your commercial property in terms of attracting potential tenants and improving the overall perception of your property.
#6 Direct Mail or Brochures
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Another way to reach prospective tenants is through direct mail. You can send out postcards or flyers to businesses in the area, letting them know that you have space available for lease. Be sure to include information about your property, such as square footage, rental price, and any special features or amenities.
According to Postcard Mania, these statistics show that when direct mail and digital advertisements are combined, the business will yield an even higher response and return on investment! On average, direct mail campaigns that included digital links yielded a response rate increase of nearly 9% about static campaigns.
If you’re not comfortable designing your materials, you can hire a graphic designer to create a professional-looking direct mail piece.
If you want to take things up a level, you can direct people to a landing page or make use of trackable phone numbers so that you can see exactly how many people are responding to your campaign. This will help you figure out the ROI on your advertising spend.
#7 Offer Them an Irresistible Location
The way you position your offer is also critical. You should try to make it as irresistible as possible for prospective commercial tenants.
Some things you can do to make your offer more attractive include offering a free month of rent, discounted rent for the first year, or a mention of included amenities like parking or storage.
You should also highlight any unique features of your property that make it stand out from other commercial spaces. For example, if you have a lot of natural light, high ceilings, or a prime location, be sure to mention those things in your marketing materials.
#8 Secure the premises
Oftentimes, potential tenants are looking for a space that is safe and secure. They want to know that their employees and customers will be safe when they are on the premises.
One way you can show potential tenants that your property is safe and secure is by investing in security features. These features can include security cameras, alarm systems, and security guards.
Other properties in the area may not have these features, which can make your property more attractive to the right tenant.
#9 Offer building-wide High-Speed Internet & Wifi
In today’s world, businesses need high-speed internet and wifi to function. Many potential tenants will not even consider a space that does not have these amenities.
If you want to attract tenants to your commercial space, be sure to offer building-wide high-speed internet and wifi. You can promote this amenity in your marketing materials and on your website.
#10 Offer Flexible Lease Terms
Another way to attract potential tenants is by offering flexible lease terms. Many businesses are looking for space that they can lease for a short period, such as six months or one year. This gives them the flexibility to move if their business grows or changes. By offering flexible lease terms, you will be able to attract a wider range of businesses.
#10 Provide shared amenities
Another way to make your commercial space more attractive to commercial tenants is by providing shared amenities. These amenities can include a conference room, kitchen, gym, or lounge area.
By offering these amenities, you will be able to attract businesses that are looking for a more complete package. If you do this, a commercial tenant is more likely to renew their lease when it expires.
#11 Provide parking
Another amenity that businesses are looking for is parking. If you have a parking lot or garage, be sure to promote it in your marketing materials. You can also offer discounts for local businesses that lease space in your commercial building.
By offering parking spaces, you will be able to attract businesses that are looking for a convenient and affordable place to park.
#12 Offer referral rewards
If you have happy tenants in your commercial space, be sure to let them know that you appreciate their business. One way you can do this is by offering referral rewards.
Referral rewards can include a discount on the tenant’s next month’s rent, a gift card, or a free month of rent. By offering referral rewards, you will be able to encourage your tenants to spread the word about your commercial space.
#13 Survey your tenants
One way to find out what your tenants want and need is by surveying them. You can use a paper survey or an online survey tool, such as SurveyMonkey.
Be sure to ask your tenants about their overall satisfaction with the commercial space, their likes and dislikes, and any suggestions they may have for improvements. The survey results can help you make changes that will attract new tenants.
If you hire a property management company, have them send out the surveys for you. This will save you time and ensure that the surveys are sent to all of your tenants.
#14 Enhance The Interior and Exterior
If you want to attract new tenants, it is important to keep your commercial space in good condition. Be sure to clean and maintain the interior and exterior of the building regularly. You should also make any necessary repairs promptly. In addition, you may want to consider enhancing the interior and exterior of the building. The will be additional costs, but it could be worth it if it helps you attract an ideal prospective tenant.
#15 Be Searchable Online
In today’s world, potential tenants are searching for commercial space online. Be sure to create a website for your commercial space and list it on online directories. You should also create social media accounts for your commercial space and promote your listings on these platforms.
#16 Engage Tenants in Conservation Efforts
Engaging tenants in conservation efforts is a great way to reduce expenses and show that you care about the environment. There are many easy ways to engage tenants in conservation efforts, such as providing recycling bins, encouraging the use of energy-efficient equipment, and offering incentives for conserving electricity. Some potential tenants might be interested in leasing space in a commercial building that is taking steps to protect the environment.
#17 Leverage Your Anchor Tenant
If you have an anchor tenant in your commercial space, be sure to promote it. An anchor tenant is a large and well-known tenant that occupies a significant amount of space in a commercial building.
The presence of an anchor tenant can make your commercial space more attractive to potential tenants. The anchor tenant can also provide support and stability for smaller tenants in the building. Also, they can help smooth out the leasing process with new tenants.
#18 Facilitate Cost-Savings
One way to attract tenants to your commercial space is by facilitating cost savings. There are many ways to do this, such as offering discounts on rent, providing energy-efficient equipment, or offering incentives for conserving electricity. Some potential tenants might be interested in leasing space in a commercial building that is taking steps to save them money.
#19 Understand Your Market
When you are marketing your commercial space, it is important to understand your target market. Who are you trying to attract? What do they need and want? What are their budget considerations? By understanding your target market, you will be able to create a more effective marketing strategy. You will also attract tenants that are a good fit for your commercial space long-term.
#20 Get Involved in the Community
One way to attract tenants to your commercial space is by getting involved in the community. There are many ways to do this, such as hosting events, sponsoring local teams or organizations, or participating in community service projects. Getting involved in the community can help you build a positive reputation for your commercial space. It can also help you attract potential tenants who are looking for a space in that community.
#21 Focus on Tenant Retention
Another important way to attract prospective tenants is by focusing on tenant retention. If you have a high turnover rate, potential tenants will be less likely to lease space in your commercial building. There are many ways to improve tenant retention, such as providing a good mix of amenities, offering competitive rates, and maintaining the property well. You can also focus on creating a community in your commercial space. This can help tenants feel more connected to the space and less likely to move out.
#22 Door knocking
Door-knocking is a great way to get in front of potential tenants and promote your commercial space. When door-knocking, be sure to dress professionally and have information about your commercial space available. You should also be prepared to answer any questions that the potential tenant may have.
#23 Cold calling
You might not think that cold calling will work in today’s high-tech world, but it can still be an effective way to reach potential tenants. A Keller Center Research Report from Baylor University analyzed more than 6,000 real estate cold calls and concluded that only 28% were answered, with just 1% converting to appointments. Digging into the study deeper, however, shows findings that support the fact that cold calling still has value.
When cold-calling, be sure to have information about your commercial space and your elevator pitch ready. You should also be prepared to answer any questions that the potential tenant may have.
By adding this research finding, you acknowledge the challenges associated with cold calling while still emphasizing its potential value in reaching prospective tenants. This provides a more balanced perspective and encourages readers to consider cold calling as part of their tenant acquisition strategy, despite the low conversion rates.
#24 Promote Your Commercial Space on Social Media
Social media is a great way to promote your commercial space. Be sure to create social media accounts for your commercial space and post regularly about your listings. You can also use social media to engage with potential tenants and learn about their needs.
#25 Provide a Tenant Improvement Allowance
Many businesses want a space that they can personalize to their liking. If you wish to attract these sorts of tenants, consider giving them a tenant improvement allowance (TIA). A tenant improvement allowance is money given to the renter by the landlord to assist them in customizing the space. Painting, signage, and adding new flooring are all possibilities with this funding.
Bonus tips: Follow up quickly
I know far too many business owners and commercial investors who never return phone calls. When you are marketing your commercial space, it is important to follow up quickly with potential tenants. If you take too long to respond, they may move on to another space.
You should also be transparent about the prices, amenities, and features of your commercial space. Be sure to include all of the important information in your marketing materials.
Comparing the Effectiveness of Tenant Acquisition Strategies
To help you better understand the impact of various tenant acquisition strategies, we’ve compiled a table that rates their effectiveness and highlights the key benefits of each approach.
| Tenant Acquisition Strategies | Effectiveness Rating | Description |
|---|---|---|
| Listing Online | 4 | Targeted local outreach, can be combined with digital marketing |
| Hiring a Broker | 4 | Professional expertise, targeted marketing |
| Networking | 5 | Personal connections, referrals, high conversion rates |
| Email Marketing | 3 | Cost-effective, targeted campaigns |
| High-Quality Signage | 4 | Attracts local attention, builds brand identity |
| Direct Mail/Brochures | 3 | Targeted local outreach, can combine with digital marketing |
| Offering Incentives | 4 | Attracts tenants, encourages long-term leases |
| Providing Amenities | 4 | Attracts high-quality tenants, encourages lease renewals |
| Community Involvement | 3 | Builds positive reputation, attracts local tenants |
| Tenant Retention Focus | 5 | Reduces turnover, attracts new tenants through referrals |
| Rank potential tenants | 4 | Prioritizes high-quality leads, improves tenant mix |
| Social Media Marketing | 3 | Builds brand awareness, engages potential tenants |
| Improve Property Exterior | 4 | Enhances property appeal, attracts quality tenants |
| Offer Referral Rewards | 3 | Leverages existing tenant network, cost-effective |
| Survey Tenants | 3 | Improves satisfaction, informs property improvements |
FAQs
How to find tenants for commercial property?
The best way to find tenants for your commercial property, list your space on online platforms like LoopNet, Craigslist, and CityFeet. Engage a commercial real estate broker who can leverage their network to find suitable tenants. Utilize social media and local business associations to spread the word about your available property.
Should I hire a commercial real estate broker to help find tenants?
If you’re short on time or not confident in your ability to market your property effectively, bringing a broker on board can be a smart move. They bring a wealth of expertise and can help you target the right audience for your space.
How important is online visibility when seeking commercial tenants?
In today’s digital age, online visibility is essential. Most potential tenants start their search online, so make sure to list your property on popular websites and consider creating a dedicated website to showcase your space in the best light possible.
How do you attract a commercial tenant?
Attract commercial tenants by listing your property online, networking, using high-quality signage, and offering competitive rates. Provide desirable amenities, maintain the property well, and consider flexible lease terms. Engage a commercial real estate broker for expertise and wider reach. Use targeted marketing and highlight your property’s unique selling points.
How to choose a commercial tenant?
Choose commercial tenants by thoroughly vetting their financial stability, business history, and credit score. Consider their business type’s compatibility with your property and other tenants. Review their business plan and growth potential. Check references from previous landlords. Ensure they understand and can meet lease terms and property rules.
The Bottom Line
As property owners, attracting and retaining tenants for your commercial space is critical for the success of your business. There are many ways to attract quality tenants, such as promoting your space on social media, door-knocking, or providing a tenant improvement allowance. By following these tips, you can find the best tenants for your properties.
This will improve your property occupancy and attract new tenants. By filling your space with quality tenants, you will not only improve your bottom line but will also contribute to the success of your community.
If you need to help you find commercial tenants to find commercial space, please contact me. I have the experience and resources to help you find the right tenants for your space.
