It's no secret that recent events have made it difficult to attract commercial clients. With 59% of current commercial tenants reported to be behind on payments, it's understandable that building owners are looking for new tenants. Additionally, 69% of tenants are looking to downgrade their office space due to many employees working from home. If you are interested in commercial rest estate for sale in Tampa, FL, you shouldn’t let these numbers completely sway your decision. Once you acquire office space in Tampa, you can use these five tips to help attract the right long-term tenants for your building.
1. Offer A Rent-Free Period
After a year when profits have been directly impacted, the term “rent-free” is more than likely going to capture the attention of those looking to lease office space in Tampa. By providing a rent-free period, you are immediately grabbing the attention of those who are already ready to sign a lease agreement. While this rent-free period will not instantly fill your accounts receivable, it will pay off in the long run.
For example, let's say you offer a two-month rent-free period on a two-month lease. You are requesting $10,000 a month for the office space. Essentially, you are offering $20,000 off their $240,000 two-year lease. They will only pay $220,000 over the two years, which is only a 9% loss for you.
That 9% is a small price compared to your stability, with $10,000 coming in every month from one tenant. The continuous cash flow is well worth the small incentive at the beginning of the lease agreement.
2. Provide Rent Abatement (Reduction)
If you are not in a position to offer a rent-free period, consider rent abatement instead. Rather than not receiving payments for a set period, a discount is applied across the entirety of the lease. This allows you to continue receiving payments and provides your new tenants with an offer they will be hard-pressed to refuse.
Let’s look at another example using the same $10,000 a month office space mentioned above. Each year, the lease is $120,000. If you offer a 10% abatement across a two-year lease, the total cost of their lease is only $216,000 versus $240,000. This provides the tenant with a cost savings of $24,000 over the two years.
Compared to the rent-free period, this is $4,000 more of a loss, but you are guaranteed a $9,000 payment the very first month of the lease. This means you have reliability and security of receiving the lease payment over two years.
3. Consider Fit-Out Contribution
Another way to attract tenants is to complete a fit-out contribution. This is negotiated into the lease. This method is not as popular for tenants because it does not provide them with direct monetary savings.
With fit-out contribution, you supply the entire commercial office space with fixtures, furniture, appliances, and other negotiated items. This saves the tenant from having to purchase or move furniture into the space. However, it does not save them money on their rent each month.
With fit-out contribution, you can still see positive ROI in the long run. If these tenants decide to move after the two-year lease, you still have all of the furnishings in the space. You can now use that as a benefit when you are marketing the property to new commercial tenants.
4. Make Building Upgrades
If you want to attract tenants, consider making upgrades to your building. For many tenants and their employees, social distancing is a bigger concern. You may be able to attract tenants by making protective upgrades such as dividers or partitions.
Features like touchless plumbing, voice-activated elevators, automatic hand sanitizer dispensers, and electronic soap dispensers reduce physical touching and thus helps prevent any viruses and bacteria from spreading around the building.
Ultimately, it showcases that you care about the health and safety of everyone who enters. This is incredibly important when large companies make decisions about whom to bring back into the office.
5. Improve Your HVAC System
When it comes to finding commercial real estate for lease in Tampa, FL, the efficiency of the HVAC system is a selling point. It is usually sweltering during the long summer, and no one wants to sit in an office space that is muggy, hot, or humid.
If your HVAC system hasn’t been upgraded in the past five years, consider making the investment. Not only will you make your current tenants happy, but you will hear a sigh of relief when potential tenants visit the building.
In addition to improving the temperature in the building, the HVAC system can also be upgraded to include HEPA filters. These can provide better air quality and help to keep viruses and bacteria from spreading through your cooling system.
When attracting new tenants for your commercial office space, you need to speak to their concerns. For many tenants, money is the biggest issue. By offering discounts or free furnishings, you increase your chances of signing on new tenants. For companies where health, safety, and comfort are the major point of concern, improving your building's systems can go a long way.
Once you have secured your office space in Tampa and decided how to attract clients, it's time to begin advertising. MyEListing is the top-rated source to list your available office space for free!