When the time comes for business to seek office space and relocate, there are a number of factors considered before the final decision is made. For you, as the property owner, it is important that the time and money you spend helps you attract the right tenants like a thriving business. If you are renovating interior space without a tenant in place, you should target your ideal tenant, making the space amenable to the types of tenants you hope to attract.
On the other hand, if you as the property owner are already in negotiation with a potential tenant, you are likely discussing a buildout project for your property. It is often the first decision to be made between property owner and potential tenant – how the expenses related to the interior renovation will be funded – turkey or tenant improvement? Tenant improvement allows the tenant to fully fund the renovations, per landlord agreement, and select the materials, contractors, etc. In a turnkey project, the landlord gains an understanding of the tenant’s needs and funds the project promising to create the ideally envisioned space. The landlord, who is footing the bill, requires a signed lease agreement, and choses the materials, contractors, etc.
Building Out the Space with Commercial Tenants in Mind
Square footage is priority one for most commercial tenants, but equally significant is how the space is planned. Creating sufficient office space means delivering the needed space for all the company’s employees to perform their duties effectively. Often a blend of smaller and larger work spaces will attract many companies to your space. Today’s businesses enjoy large collaborative spaces for employees to come together and brainstorm ideas, but also want to have individual work spaces as well. If your overall square footage is smaller, consider developing small gathering places for workers, a task easily achieved with professional architects and engineers helping with project design.
Health and safety concerns are also crucial for attracting quality commercial tenants to your space. Hiring a well-qualified architect, engineer, electrician, plumber, HVAC technician, and more means your future tenant will know you’ve invested in health and safety. Your commercial property’s stairwells, walkways, elevators, and other office elements should be 100 percent safe, and air conditioning and heating should provide proper ventilation for the entire building. Your property should be inspected and free from mold and other harmful substances which could endanger tenants. Keep in mind, businesses can withdraw from the lease if your property puts its employees at risk.
Your rent determines how quickly your property rents as well as how long it remains rented. While the exterior aesthetics may impact your rent, charging too high a price (considerably over market value) will deter tenants regardless of how well-maintained your property is inside and out. In the case of a buildout project, rent will be determined prior to the renovation. As the landlord, you should set the rent to make the needed return on investment without raising the rent after too short period of time.
If your property has common spaces which you would like to outfit for an additional price, discuss options with your tenants to determine what types of areas – courtyard, picnic area, gym, daycare, etc. – they would be interested in before investing in these areas. Offering your tenants areas with appeal to them specifically will make the space valuable.
Successfully Attracting Commercial Tenants
At Perillo Construction, our team is ready to help you create the ideal spaces to attract the perfect tenants for your commercial property. In every project, we strive for the highest quality and service, always on time and on budget.