Finding New Beginnings in Commercial Property Leases
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
We don’t have to tell our fine audience of investors, property managers, tenants, lenders, agents, brokers, and commercial real estate fans the obvious, but we’ll say it anyway: the world sure is upside down lately. And yet, the market is still hungry for innovation, community, connection, and new and renewed experiences.
What’s your big dream? No, we’re not talking about the things you’re doing for a living. If you had the funding to create your own business, what would you love to do? That’s the question so many are asking themselves in a world where so much of what we thought we knew just isn’t around anymore.
Business owners are having a revolution in this post-pandemic economy, and part of it is through people taking the time to list commercial real estate property for lease.
Commercial Leases Are Making a Comeback
Now, we’ve covered leasing commercial property before, and it’s far from a new concept. But the new aspect here is that people are directly using the lease option to launch businesses faster and test concepts before just diving in.
Previously, people would focus on launching enough capital to purchase property and equipment outright, but that model is heavy on the risk and sometimes very low on the reward. With leasing the property, the monthly rent is much lower risk compared to being stuck with a property that you might have to sell at a loss to recoup any money.
That’s frustrating and far from ideal. The more resources diverted to active business building, the better. Why buy a property when you don’t even know if the business concept is viable?
Making the Most Out of Commercial Property Leases
Today’s visionary entrepreneurs are looking at commercial real estate property for lease and choosing to make the constraints work for their launches. It isn’t about owning the property right off the bat but transforming the property within the constraints. Property owners still want to make sure that the building doesn’t change too much.
Lease Flexibility
One of the best aspects of leasing a commercial property is that the terms don’t have to be fixed. In other words, business owners realize that the post-pandemic era is letting them customize lease agreements to suit their needs.
They know that landlords would rather have someone in the property instead of just letting it sit vacantly. So instead of just waiting for the right long-term tenant to come along, many property owners are looking at shorter leases that allow for tenants to have flexibility.
Customizing the Space: A Partnership
Once companies work out exactly what the lease agreement involves, it’s also time to work out how to customize the space. Every commercial space has to have a little customization, even if that’s just paint that matches the color scheme of the startup business.
It is so important not to rush this part of the process. See it as a partnership between the business tenant and the property owner. Both parties can win as long as communication is open, transparent, and honest.
Getting Serious About the Work Involved
Today’s companies have options in the commercial property leasing space, but they still have to come through with a solid plan to take advantage of the space they’re given. What a company does for marketing will absolutely play a huge factor in their success path.
The worst thing that today’s companies could do is take on a lease without a solid plan for how to turn the space into their vision. Looking at how to transform a space isn’t something that you do overnight; you walk into it after taking plenty of time to study your audience, your local market, traffic patterns, and what incentives local governments can offer.
It’s a great time for small businesses trying to make a comeback after the pandemic; local governments know that foot traffic and things to do will lead to recovery better than vacant properties.
The Best Types of Commercial Property for Leases
If you’re going to test out an idea, it’s important to think about the type of space that you need to pull the idea off successfully. For example, have you thought about tapping into the huge demand for data centers? Even if you don’t have a huge facility, you could serve small and medium businesses that are beginning to take their own businesses online and into the cloud space.
A rented facility lets you see if there are enough small, medium, and even a few larger companies in your local market that would sign up for your services.
Life sciences is another industry that’s continuing to explode, especially in the post-pandemic era. You could open up lab space and test ideas within the life sciences industry, but you would most likely need to use the funding to address other issues as you get the business started. But with leasing, you at least don’t have to buy and hold onto a property that may decrease in value or prove to be non-viable in other ways.
What about a clothing store? Retail is still an interesting industry. Sure, giants like JCPenney and Sears are on their way out, but that doesn’t mean that the demand for hyperlocal retail is dead by any stretch of the imagination.
The way people are shopping is changing, but there is still an audience that wants to get away from the Amazon-style type of shopping and reconnect with small businesses.
Without buying retail space, you can launch an idea, market it, and see if it sticks around. If it doesn’t, you aren’t stuck with a commercial property that you can’t use.
The Money Is in the Marketing
We think that today’s companies will indeed find new beginnings in commercial property listings. Looking at people who list commercial real estate property for lease is just a matter of tapping into the local community. Good property owners know that the money is in the marketing, and they will certainly make it clear what properties are available for lease.
List & Browse Commercial Property for Lease for Free on MyEListing.com!
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