In an uncertain economy, a dependable income is a valuable asset. So, it’s no surprise that most commercial property managers (83%) are putting their efforts into tenant retention rather than new acquisition.
Choosing to remain in a property is a big decision for business owners, and they’ll take time to weigh the pros and cons.
Here are the best commercial tenant retention strategies to make their decision to stick with you a straightforward choice.
Offer More Flexible Lease Renewal Terms
A lease outlines the terms of the arrangement with your tenant. For some commercial residents, this binding agreement can cause an issue. It can leave residents with restrictions that don’t always suit their business plans.
One way to improve tenant retention rate is to offer a more flexible lease with competitive pricing.
A strategy like this will generate more loyalty from your residents. You’ll be proposing terms that better fit the fluid nature of your residents’ commercial situation.
For example, that might include a shorter duration between lease renewals. Or you could offer more scalable space options. Scalability will help support your tenants’ businesses as they grow.
Offer Technological Innovations
Upgrading the technology can make any commercial property more appealing to tenants. Innovations in technology can make a business space more efficient, cost-effective, and convenient.
Take high-speed internet, for example. Having superior infrastructure offers a tangible benefit to businesses. It provides fast and reliable connectivity.
Smart technology for energy systems also has a measurable benefit. It helps residents save money on their bills. It’s also more eco-friendly, assisting businesses to hit their sustainability goals.
You may have tenants who require more robust security measures. In that case, you can add a lot of innovative security technology to a building. For example, you could offer biometric identification systems.
If you offer commercial spaces with technical features that tenants can’t find elsewhere, it’s a competitive advantage. Tenants will feel more motivated to stay with you.
Improve Your Communication Setup With Tenants
Open communication is the key to a long-lasting relationship with your residents. One way to improve your communications is to add a digital system for managing all interactions.
It helps streamline your property management and is more convenient for tenants. Choose a tenant portal or CRM (customer relationship manager) software.
Focus on one that’s easy for the tenant to navigate and helps you track important property management issues. That will include payment tracking, property maintenance records, and communications with tenants.
You’ll have a happier and more satisfied tenant when you have this system.
They’ll be able to oversee their commercial property from one website. And they can say goodbye to juggling between phone calls, text messages, and emails.
Offer New Amenities
Commercial residents want something more from their buildings. So spend the time getting to know your residents and learning about some of the upgrades they want.
It will help you prioritize investments in your building. Not only will that help you retain tenants, but it will also improve the long-term value of your property.
Popular features include modernizing communal spaces like conference rooms, lounges, and waiting areas. Adding wellness rooms and fitness centers is an increasingly popular workplace addition.
You could also improve the outdoor space to provide a retreat for office workers or add a rooftop garden.
Keep an eye on industry trends. It will give you inspiration for your commercial space. And it will ensure your building is the most sought-after commercial property in the neighborhood.
Focus on Sustainability
Sustainable practices are of increasing importance to businesses. That’s not limited to what companies do and what they produce. It also applies to business premises.
That’s where you can offer something to your tenants. You can implement eco-friendly measures in your property to help your tenants operate in a more environmentally friendly fashion.
That will help them in other ways, too. It could benefit your tenants when aiming to meet regulatory standards or help them save money (such as reduced energy bills).
It also demonstrates your values to tenants. Companies want to align themselves with partners with the same environmental priorities.
Improve Building Safety
Health and safety are big priorities for businesses. Offering a safe commercial space will be of great value to your tenants. It will show that they are essential to you and help you retain them when renewing the lease.
First, focus on basic health and safety compliance. It’s worth getting an independent audit to find risks in your building. After that, consider other improvements that will benefit your tenants’ health.
That might include better air filtration, for example. Speak to tenants about their health and safety concerns and create an action plan outlining their priorities.
It will show you take a proactive approach – building trust with your tenant and improving your long-term relationship.
Create a Community
Perhaps you own multiple commercial spaces in one location.
If so, you have the perfect opportunity to create a business community or hub. That can be hugely beneficial to your tenants, as it allows them to network with other residents and generate new business.
A sense of community will make the workspace more pleasant for your tenants and their employees.Learn More
Ask for Feedback
Take time to speak to your tenants and get feedback about their experience. It shows you value excellent customer service. And it can help you preempt issues that could tempt residents to end their lease with you.
A survey is the easiest way to do that, and digital platforms mean you can run it online, making it a more efficient process. When you read through feedback, look for patterns and priorities.
Ensure you show your tenants that you are listening to their concerns by following up on the most critical issues.
Commercial Tenant Retention: Taking a Proactive Approach
It takes time and money to find the perfect commercial tenant. So, it is a financially wise decision to hang onto a reliable tenant for as long as you can.
Be proactive in your approach and use these commercial tenant retention strategies to help you.
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