When you have lots of vacancies in a commercial or retail property it is wise to develop specific initiatives to work through the vacancy challenge in a productive way. You can do this through an incubator leasing program.
™
It is no secret that some locations and cities have an abundance of vacant property at the moment. Specific solutions and issues are required to create enquiry and tenant occupancy. Landlords require specific assistance to resolve a high vacancy levels.
Commercial and retail property agents are best placed to provide the right strategies in marketing and leasing. That being said, any leasing appointment of an agent on a quality property should be on an exclusive basis. There is a significant amount of work required to lease a property today and an exclusive agency will allow that time commitment to occur.
As the word incubator infers, you are potentially growing a tenant through a life cycle to encourage them to a fuller growth and occupation within the property. The conversion of an incubator tenant to a successful tenant takes time, but when the property market is slow or challenging, the strategy becomes useful and realistic with difficult properties and those with excessive vacancies.
There is no point having an extended vacancy in a property for the long term. Loss of rental and outgoings recovery can become significant over time. Some landlords fail to adjust to the current market circumstances and take a huge financial hit simply because they fail to adjust to the prevailing economic circumstances relative to the property type and the location.
How long does it take?
It takes about 12 months to convert an incubator tenant to a commercial leasing lawyers normal fully operational business tenant. By that time the incubator tenant should be on full market rental and an established long term lease.
Here are some tips for implementing an incubator leasing program in a property or in an area with lots of vacancies:
Any existing vacancy can be resolved through an incubator tenant being introduced to the property. Understand the needs of the property and the landlord so that the appropriate lease documentation can be created and implemented.
So exactly what is a good tenant in commercial or retail property today? It is such a simple question but the answer can be complex depending on the needs of the property owner or investor. Here are some ideas that can apply to the tenant selection process for your landlords:
When it comes to commercial or retail property performance, the tenancy mix and the selection of tenant will significantly help the landlord's plans and targets. If the tenants, landlord, and property manager work together to a plan and strategy, the property will benefit.