Renting Out Commercial Real Estate The Basics

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It can be difficult to navigate the waters of commercial real estate. While residential property owners can go online and list their properties with relatively little work — and even rent them without the interference of a property manager in some cases — this is not the case for those that own commercial properties. However you came to own commercial real estate, renting it out can be another issue entirely. Certainly, there aren’t many advertisements for commercial properties “for rent by owner”, and with good reason. It can be difficult to advertise storefronts for rent, for example, and even more difficult to manage that property once it’s been leased out. Luckily, commercial real estate companies are available to help you find the right tenants for your property. That way, renting a storefront out becomes less of a headache and more of a moneymaking opportunity. Commercial real estate companies know the industry — they know what people are looking for, and they know who is looking. Putting these two factors together, you have the potential for a great partnership. This makes it easier for you to act as a landlord, and easier for your potential tenants to find the retail store for rent that they need.

The Commercial Real Estate Market Today

Now is the time to jump in regards to the real estate marketing, especially if you’re interested in renting a storefront out. Right now, the commercial real estate industry is both industrial and multifamily — at least, these are the strongest points of the market. The apartment sector absorbed 125,000 rental units in 2012. The national apartment vacancy is at 4.8%, considered rather thin. The demand for industrial space, meanwhile, has exceeded pre-recession numbers. The value of commercial properties has increased by 42% since crashing after 2009, making it a great time for anyone hoping to rent out commercial properties to put their investments on the market. Commercial building transactions like office buildings, retail space, warehouses, and lodging accounted for about 48 billion square feet of space in 2015. At the same time, these spaces ranged in size and style. When renting a storefront out, you don’t necessarily have to make many big changes to make the storefront appeal to potential tenants — if you have the space they need, many tenants will be happier making their own changes and adjustments.

Renting Out Spaces: What To Consider

If you plan on renting a storefront out, there are several things to take into account. Firstly, you should be careful about the tenant you select, running the necessary background checks. It’s important to note that commercial real estate relies on the properties on the market being functional above all else. While damage to a residential property can be seen as a potential fix, it’s more of an aggravation to those looking for storefronts. Therefore, whoever you rent to needs to be trustworthy and responsible. At the same time, as a landlord you will be responsible for fixing some unpreventable issues, and this can be difficult to do should you live far away from your property. Therefore, you may want to ask the company advertising your property about a property manager. Property managers handle things like leaks and electrical problems for you. This makes life easier for both you and your tenants, and ensures that problems are solved before they get out of hand.

Advertising Your Space: What To Look For

One of the great things about using a commercial real estate company is that it can help you advertise your space. Emphasize things like the functionality of your space, as well as its close proximity to convenient locations. Storefronts in particular should be advertised through their potential. They themselves will serve to advertise for the tenant, and therefore as a landlord you should be prepared and accommodating to potential aesthetic changes being made to the property. Most, after all, are temporary. With this in mind, you will hopefully find the right tenant sooner rather than later.


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