Most brokers and property owners face a number of difficulties in this commercial real estate market. That said, chances are always there to those who work hard and dig deep enough to find a solution. Click here for more commercial broker near me
When the commercial and retail property market becomes more difficult, there are certain general guidelines to follow:
Existing tenants are the lifeblood of the property’s revenue and cash flow. Those renters are likely to be under pressure in the same manner that the landlord is. To guarantee that excellent renters remain in the property for the medium term, lease terms and conditions must be flexible. It’s preferable to have a renter that pays 80% of the rent than to have a long-term vacancy that pays nothing.
Anchor tenants are critical to the long-term viability of a property with smaller specialised tenants. In the case of retail property, this is the situation. There are certain management processes that must be followed. Maintain regular communication with any anchor tenants to ensure that their occupancy is steady and productive. People are drawn to a retail location by a successful anchor tenant.
Renter stability should be the goal of market rent reviews, which implies reasonable and flexible rent conditions that benefit both the tenant and the landlord. When it comes to a rent review, there is always a way to find a middle ground. If a landlord provides a tenant with some flexibility or an advantage, the tenant should be requested to return the favour (renovation, longer lease term, exercise of option, etc).
Negotiate any lease alternatives as soon as possible to avoid the current renters looking for a new place to live. Other landlords will be looking for renters to fill their vacant homes.
The upkeep of an existing property should be closely monitored and maintained. There is a delicate balance to be struck between low maintenance levels that degrade property use and production and delayed maintenance that maintains an acceptable degree of presentation for renters and custodians.