The Do’s and Don’ts of Commercial Real Estate
The world of commercial real estate (CRE) is ever-changing, especially in a post-pandemic market. From retail spaces to office floors, storage units, or entire corporate office buildings, the best practices for leasing, managing, and overseeing a commercial property requires constant evolution and attention to the market and the tenants.
At a time of uncertainty in the commercial sector – from new Covid-19 variants to hybrid workplaces – it is more important than ever to catch up with the best procedures for managing commercial real estate. Understanding the basic, and the not-so-basic, Do’s and Don’ts of commercial real estate can help you tackle future instability, unexpected changes, and also growth within your own properties.
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Do #1: Know Your Space
Whether you own or manage one property or 100 properties, it is crucial to have a thorough understanding of your space and the industry that it caters to. Commercial properties are diverse and require more optimization than residential properties when it comes to planning, leasing, and maintaining the space.
Understanding your space’s unique attributes and needs will not only help you find the most suitable tenant for it, but it will also help you close each deal faster. Once the space is leased, it will ensure tenants stay longer, with a deeper understanding of the space’s benefits and limitations and better managing of the space on your end.
Do #2: Stay Updated and Upgraded
Such as any other aspect of our lives, work across industries is becoming more dependent on technological infrastructure. The digital infrastructure of your spaces should be a top priority, and ever-evolving to answer the needs of your tenants.
Moreover, an office space that is digitally equipped to allow hybrid working will have a big advantage over spaces that require more adaptation. As workplaces are becoming increasingly phygital (both physical and digital), the tech infrastructure of the space is becoming the most important attribute of a commercial space.
Do #3: Create Flexibility
From the retail industry to corporate companies, the world is experiencing rapid changes regarding working culture, employee needs, and business goals. When a company is looking for its future property to lease, it is prioritizing flexibility and its own ability to react to future changes within the space.
What does flexibility mean in the context of a commercial property? Optimization of the space itself, which allows easy design, rearrangement, and adaptation to different scenarios.
If you are a landlord, you might have your standards for your properties when it comes to design, renovation, and the overall function of the space. While it is important to have a vision for your spaces, an ability to be flexible and communicative with your tenants will help you cultivate long-lasting relationships and an advantage over your competitors.
#1 Don’t: Put All Your Eggs in One Basket
Since commercial real estate deals can sometimes take months to close, many landlords make the mistake of investing all their time and energy in just one prospective tenant. A strategy that prioritizes as many leads as possible, rather than a strategy that focuses on just a few viable tenants, might take more resources but will be worth it in the long run.
Expanding your marketing operations can seem easier said than done. However, using advanced technological tools available in the market, you can change the way you go about tenant searching. qbiq’s commercial real estate software transforms the way you market your commercial properties; with AI-driven planning engines that can generate unlimited test fits for every space in less than 24 hours, with qbiq you can help dozens and even hundreds of leads envision your space with tailored layout planning and 3D virtual tours.
Want to hear more about what qbiq can do for your business? Request a demo
#2 Don’t: Compromise on The Perfect Tenant
Long periods of vacancy are undesirable for any landlord, to say the least. Yet, when times like that occur, some landlords are so focused on occupying their properties that they might find tenants that don’t quite fit.
Investing more time in your tenant search can be stressful, but the effort will usually pay off in the long term. The more a tenant understands your space, its limitations, and its potential, the longer they may stay and the happier they will be.
#3 Don’t: Stop Evolving
Organizational change is always hard. Whether you’re an entrepreneur, a manager of a company, or a private landlord, you know every organizational change you make can alter the course of your whole business for years to come. However, in the commercial real estate market, it is important not to resist change. In an industry that is lagging behind when it comes to technological disruption, the more you resist change and ignore the rapid shifts in the market, the harder it will be to survive in the coming years.
Staying informed and attuned to market trends, such as hybrid working, online retail, and start-up culture, is crucial to be able to keep your competitive edge. In a market that has more supply than demand – more commercial spaces than tenants – you need to keep evolving, acquire new technology, and not be afraid of changing your process and strategy, no matter how well it worked in the past