2024 is proving to be a nervous year for commercial landlords. Prices have fallen by over 10%, and the market still offers risks to investors.
So, if you are in the enviable position of having an excellent tenant in your commercial property, you want to do your best to keep them. Here are some tried-and-tested lease renewal strategies for commercial property owners in Savannah.
Provide Flexibility
Commercial tenants have many competing demands in their business, and having a strict lease term is often another challenge to add to the list. You can counter this by offering greater flexibility in your lease agreement.
That might be varied durations or the opportunity to scale with space with ease. You might even offer to change early termination clauses. By providing more freedom to tenants, you gain more loyalty.
Tenants will get something they are unlikely to find elsewhere, which will help you retain the best commercial businesses for your properties.
Offer Property Upgrades
You can make your property more appealing to your tenants, thus increasing the odds of lease renewals. One way to do that is to provide a tenant improvement allowance.
That means financial support for the most important upgrades for your commercial tenant.
This means the company can personalize the space to suit its business best. When tenants have a space customized to their needs, they are more likely to remain for the long term.
Plus, upgrades add value to your commercial property.
Focus on Excellent Communication
Loyal tenants have strong and trusted relationships with their landlords.
The best way to foster that is to prioritize communication. Be prompt when responding to tenants, and ensure you always have someone available to take their calls or reply to their emails.
Be open to feedback and act on any concerns or suggestions. That way, your tenants will know you are there to listen to them, and they will feel valued.
Offer Lower Rates and Other Incentives
Nothing attracts tenants as much as competitive rates. If tenants can save money on their commercial property, it will keep them loyal to you.
That doesn't mean you have to operate at a loss with your rental income. If reduced rates aren't an option, you could provide other incentives, such as waiving fees.
Always make sure your property is commercially viable for your tenants. That means understanding what they can afford to pay to stay in your property.
Conduct a Survey or Host a Meeting
One of the easiest ways to understand your tenant's needs is to talk to them.
To get that feedback, you can run a survey or arrange an informal meeting. Minor tweaks to the lease or property may be all you need for tenant retention.
Lease Renewal Strategies That Work
Good commercial tenants in Savannah are worth keeping, especially in an uncertain financial era. It's helpful to go the extra mile, and these lease renewal strategies should provide a few starting points.
An experienced property management team can help keep your commercial tenants happy. Our team at PMI Savannah Metro has extensive experience in commercial property management and the keen attention we pay to small details sets us apart.
Learn more about our services and get in touch if you have any questions.
