At some point in the past, every building owner has put a tenant in their property that they knew just was not a good fit overall. Maybe it was the space was empty for too long, needed too much improvement, or that they just wanted the cash flow. How many of those times did the tenant work out in that space? I can say from experience that when I’ve put in tenants against my better judgement, I can always look back and say to myself that I knew I shouldn’t have placed them in that space.
With that in mind, here are a few ideas that can keep you from making a bad placement.
- Run A Credit Check – Running a credit check is usually considered a hassle and when looking to get the space rented, can prolong the process. If you find the tenant has issues making payments on time to vendors, you can be assured that at some point, you will be the one that they are floating or not paying altogether.
- Choose The Right Business Type – We usually encounter this problem when we are putting a new business type into a building that has never been there before. This can cause much strife with the other tenants or neighbors. Got limited parking? Do not put a tenant there that will run 200+ cars through there a day. Got office staff next door that need a quiet environment to work? Don’t put a tenant in there that utilizes loud music as a part of their environment. Sometimes you must look at how the new tenant will work harmoniously with the other tenants.
- Change Of Use – Some of the worst placements we have made is putting the wrong type of client in the wrong space. This is when you find a potential tenant that wants the space but has a business type that is wholly unsuitable to the building’s use. An owner wanted us to place a Seafood Market at the end of a retail strip. We did but the next two retail spaces were constantly empty due to the smell.
- Under Capitalized Tenants – It is altruistic to help a struggling business make a leap up to a larger / better traffic /higher-class space. While it feels good to give someone this type of opportunity, they will be struggling to make the improvements and payments to make new space profitable. Always confirm that the tenants can afford the new payments and the whole of the improvements.
- Building Maintenance and Improvements – Florida is a fantastic place to live and do business but is takes its toll on properties. Building owners must create and maintain a building maintenance schedule in order to keep their buildings fresh and appealing. We had an owner that would never do ANY improvements on the building and it showed. It was hard to tell prospective tenants that the building owner would take care of maintenance items when the building was in such poor condition. Spot cleaning, making all the lights work, changing out old or worn out can keep the property nice and increase the time between building renovations
- Don’t Be Afraid To Say No – Boy do we know that it can sometimes be challenging to say no to a tenant that wants the space and is waiving money in your face, but just isn’t the right fit, but being selective can save you time, money and aggravation in the future. Sometimes it better to give up a couple of months’ rent in order to find a better tenant that will be happy and profitable in their tenancy and keep on renting for years to come.
- Find The Right Broker – Lastly, it is important to find the right Commercial Real Estate Broker that can find quality tenants that are happy with their space and continue to lease multi year. This in turn keeps the turnover and the vacancy rate down, both of which can play havoc with the overall operating costs.
Looking for Commercial Real Estate in the Tampa Bay Area?
Whether you are a looking for a space to lease for your business or an investor trying to find a new property to purchase, working with an experienced Commercial Real Estate Broker is guarantee to make the whole experience easier, smoother and faster. At Hill Valley Commercial, we are proud that we have helped numerous business find their space in the world. We take our over 20 years of knowledge in the Tampa Bay Area to help you find exactly what you are looking for. Check out our listings on our website and let us help you get your search started today!