When your commercial space sits empty, it can feel like an uphill battle to attract the right tenants. Extended vacancies can strain finances and lead to mounting concerns, but the good news is there are several strategic steps to turn the situation around. Here’s what to do when your for-lease space remains vacant:
1. Reevaluate Your Lease Terms
Sometimes, inflexible or outdated lease terms can be a barrier for potential tenants. Consider revisiting the following:
- Rent Structure: Check that your rent is in line with current market rates. Offering incentives like initial rent discounts, longer lease terms, or flexible payment options can attract interest.
- Lease Flexibility: Especially in uncertain markets, tenants value flexibility. Explore options like shorter lease terms, subleasing clauses, or renewal incentives to accommodate a broader range of tenant needs.
2. Update Your Space for Market Appeal
Prospective tenants may be looking for more than just square footage—they often want an attractive, functional space that suits their specific needs. Evaluate whether your property’s layout, design, and amenities align with market demands:
- Refresh the Interior: Invest in aesthetic updates such as new paint, lighting, and flooring. Modern, neutral decor is generally more appealing and can help potential tenants envision themselves in the space.
- Functional Upgrades: Consider adding or upgrading features that increase functionality, like high-speed internet, energy-efficient lighting, or customizable workspaces.
3. Highlight the Property’s Unique Selling Points
Identifying and marketing your space’s standout features can differentiate it in a crowded market. Think about these aspects:
- Location Benefits: Emphasize the neighborhood, nearby amenities, or foot traffic in marketing materials. For retail spaces, highlight nearby businesses that drive traffic, while for office spaces, proximity to transit and dining options can be appealing.
- Building Amenities: If your property has unique amenities—like secure parking, shared meeting rooms, or a fitness center—ensure they’re prominent in listings and viewings.
4. Revisit Your Marketing Strategy
To reach more potential tenants, ensure your marketing materials and channels are working effectively:
- High-Quality Visuals: Invest in professional photos and videos that showcase the space in its best light. 3D tours and drone shots are popular among tenants, offering them an immersive preview.
- Targeted Advertising: Expand your reach by listing your space on popular CRE platforms and social media, targeting specific industries that might benefit from your property’s features. Platforms like LinkedIn, Instagram, and Google Ads can effectively target prospective tenants.
- Highlight Success Stories: If you’ve successfully leased to similar businesses in the past, create case studies or testimonials to add credibility and show how the space has benefited past tenants.
5. Optimize for Virtual Showings
Remote showings are becoming a standard option, especially for out-of-town clients or busy professionals. Offer video tours or live virtual walkthroughs to make it easier for potential tenants to explore the space. This convenience can often accelerate interest and move prospects further along in the leasing process.
6. Consider Temporary Uses
An empty space doesn’t have to sit idle. If long-term tenants are hard to secure, consider short-term or temporary leasing options:
- Pop-Up Shops: Short-term tenants, like seasonal pop-up shops or temporary retail, can generate income and attract foot traffic to the property.
- Event Rentals: Depending on the space, you could offer it for events, workshops, or meetings, creating an alternative revenue stream while still keeping the space on the market for long-term tenants.
- Coworking Spaces: Create temporary workspaces for freelancers or remote workers. You might not only cover costs but also attract longer-term tenants who enjoy the environment.
7. Collaborate with Local Brokers and CRE Advisors
Experienced brokers and advisors have deep insights into the local market and may have direct connections with potential tenants. Working with a broker can streamline the leasing process and give you access to a larger pool of qualified prospects.
- Broker Incentives: Consider offering additional incentives or a higher commission for brokers who can bring a qualified tenant quickly.
- Networking and Referrals: Attend networking events and collaborate with other property owners and professionals in the CRE industry to generate interest through word of mouth and professional referrals.
8. Host an Open House or Special Event
Hosting an open house is a proactive way to bring people through your property. Partner with a local business or provide a small incentive for attendees to maximize turnout. Open houses and special events create opportunities to showcase the property’s strengths and even gather feedback on any potential improvements.
9. Stay Open to Diverse Tenant Types
Broadening your target audience can open up new opportunities for tenancy. Consider a variety of business types that could benefit from your property:
- Creative Uses: Look beyond traditional tenants and consider creative uses for the space, such as wellness studios, galleries, or startups.
- Flexible Leasing Options for Niche Industries: For example, retail spaces can be converted into experiential showrooms for online brands, while office spaces might attract wellness businesses or tech startups looking for a temporary setup.
10. Evaluate Competitors and Market Conditions
Look at similar properties in your area to understand what they’re offering and how your space stacks up:
- Competitive Analysis: Examine the features, pricing, and leasing terms of other properties. Identify gaps in your own offerings and adjust accordingly.
- Market Conditions: Monitor changes in the local economy or industry trends that could affect tenant demand. If certain types of businesses are moving into the area, tailor your marketing to attract similar companies.
11. Engage with a CRE Marketing Partner
If your space remains vacant despite all efforts, a CRE-focused marketing partner like VidTech can elevate your approach with custom video marketing solutions. Highlighting your property’s strengths through video, data overlays, and professional editing, a CRE video marketing service can maximize reach and engagement, giving prospective tenants a clearer picture of the space’s potential.
Empty spaces can be challenging, but with strategic adjustments, an effective marketing approach, and a willingness to innovate, you can attract the right tenant. By taking these steps and staying proactive, you’ll maximize your property’s appeal and reduce vacancy time. Let VidTech help you showcase your space’s unique potential to secure the perfect tenant faster.
