Finding the Right Tenant for your Commercial Property

A good tenant can make all the difference for your commercial property. Likewise, the wrong tenant can turn your investment property into your worst nightmare and can impact your profit potential. It takes time and effort to find the right tenant, but the rewards are worth the effort. Here are a few things to consider when looking for the right tenant.

Identify Your Property’s Best Use

Identifying the best use for your property helps you set the rents correctly. You are looking for the best profit potential for the property so that you can advertise it correctly. Look at the following to help determine the best use:

• Property type and current zoning
• Potential for re-zoning
• Property size and accessibility
• Any build-out in place
• Potential customers or employees
• Types of businesses in the surrounding neighborhood

If you are inexperienced with commercial property management in Chicago, it is helpful to hire an accredited property manager to help you. The best use of your property will determine the type of tenant your look for and the lease price for the building. The services of a Chicago commercial real estate management company can be invaluable even for experienced property owners.

Educate Yourself on Surrounding Businesses

Learning more about the neighborhood surrounding your property will help you determine who your best tenant will be. Ask yourself these questions about the surrounding businesses:

• Is the neighborhood changing? If so, is it for the better or worse?
• What types of business are nearby?
• Are there other properties available nearby? If so, how is yours better?
• Is there a high demand for commercial property in the area?
• Are there potential customers or employees close by?
• What does your tenant need to be successful in the space?

List Your Commercial Property Correctly

Your property listing should be designed to attract the most desirable tenants for the space. Spend some time designing an ad with the right wording to present your property in its best light. Be honest about its potential and who would be an ideal tenant.

Determine where to find your ideal tenant and target them specifically. It is usually a waste of time and money to target your advertising efforts to a generic audience. If you’ve done your homework, you know who your ideal tenant is and where to find him. Pay a little more, if necessary, to list your Chicago commercial real estate properly. If you need help, consult with a Chicago commercial real estate management company.

Research Your Potential Tenant

Once you’ve located a potential tenant, do a background check. Many landlords skip this step and have horror stories to tell about it. You are entering into a long-term business relationship, make sure you are choosing the right partner. Here is a minimum of research that you should do:

• Background Check: Look for criminal history, prior evictions, repossessions, civil judgements, and bankruptcies
• Verify income and do a credit check
• Check with previous landlords, is the tenant stable and do they pay rent on time?
• Is the tenant a good fit for the property? Do your instincts tell you the tenant will be successful?

Utilize a Commercial Real Estate Manager

It is always wise to consult an expert, especially when your money is at stake. Hiring a commercial real estate manager helps you get the most out of your property while removing the day-to-day tasks from your plate. At Millennium Properties, we draw up a customized management plan that is designed to help you maximize your profit and cut out the hassles. We have experience with all types of property management. Chicago is a competitive market, let us help you find the right tenants for your commercial real estate.