Thinking about how you offer your commercial property to the market is really important if you want to maximise rental value. With some careful consideration, you can understand what tenants require – and other things that they desire.
However, sometimes it can be difficult to know where to start. So, we have compiled a Landlord Checklist of what you should consider:
Seeking the advice of a qualified commercial surveyor in the early stages is always highly recommended. The advice they can give you will be invaluable – telling you clearly what the market wants. After all, they deal with new lettings and current requirements on a day-to-day basis so are always best-informed to advise you.
If you have a tenant moving out of the property, then you should consider remarketing as soon as possible to minimise a ‘void period’.
You should also consider what works are required to bring the property to a suitable standard. Your outgoing tenant may be responsible for some of these works – which will form part of the ‘dilapidations’ works/ claim.
Enhancing the physical condition of your commercial property
The condition of the property is a key concern to the tenant because:
- They want to ensure the property does not disrupt business
- A tenant is likely to be responsible for the maintenance and repair of the property – therefore they want to minimise potential costs
Therefore, as a Landlord, you should:
- Make sure both the external and internal aspects of the property are in good repair
- Decorate to a good standard – as this will add value and tenants are likely to be attracted to the fact it’s ready to move into (and they can put their own stamp on the premises)
When refurbishing your property, you should consider:
- Are you offering what the majority of the market wants?
- While the property is unoccupied, would now be a good time to remove any asbestos-containing materials? (This would make the property more economical and user-friendly)
- Can you improve efficiency in the building by considering your utilities – such as lighting, type of heating etc.?
Consider what type of accommodation your commercial property is – as this will affect how you present it.
For retail units ensure:
- Clean & tidy sales areas with good LED lighting
- Clean floors
- No stained ceiling tiles
- No clutter
- Heaters, radiators or air-con units are clean and in working order
For offices ensure:
- Clean & light spaces
- A good quality flooring covering – it’s essential for office space
- Well-decorated walls
- New ceiling tiles
- Good-quality lighting
- Removal of some or all of older office partitions – this can emphasise the size and use of the space
- Parking – if possible – you want free spaces for visitors, at least
- Furnishing – at least as an example so a potential tenant can envisage how the space could work
For industrial and warehouses ensure:
- Well-presented external brick or cladding
- Roller shutters in working order
- Clean skylights to improve the appearance and levels of natural light
- Clean & painted flooring (depending on use)
- Gas heaters in working order
- Satisfactory utility certificates
Overall you should have a clear site or compounds – preferably with secure perimeter fencing and gates.
Marketing your commercial property
Firstly, you should contact a commercial agent – as they can advise you on how to market your property, advise on market rents and what information is needed.
In order to market your property effectively, you should consider:
- Who is your target audience? Who is active in the market?
- What is the market compared to similar premises? And is there a shift in the market rents (supply & demand)?
- Whether the property has:
- An energy performance certificate? Does the rating meet the minimum standard to legally let the promise?
- Satisfactory electric, gas, and air-conditioning (if applicable) certificates?
- Other health & safety reports in place – such as legionella & asbestos reports?
When your commercial property is ready for the market, an agent will have a number of marketing tools to suit your property.
- Key features & benefits of the property online & offline in a brochure
- Good quality photographs – either from the agent or professional photos may be recommended
- Aerial photographs can best show the property, land and the surroundings
- 360-degree photographs are a great visual aid
- Walkthrough videos can also really help the buyer journey
- Signage remains a key marketing tool – and there are a few different options:
- A large ‘V’ Board attached to the property or bespoke sign.
- A banner can be used for various sizes, usually with a high level of passing traffic
- Window vinyls for roadside or in town, particularly useful at ground floor level in towns or roadside
- Website marketing such as Zoopla – which can attract a high level of traffic
- Bespoke & targeted websites within Industrial/Office/Retail Agency Societies
- Use of social media platforms
Help with leasing your commercial property
When it comes to preparing your commercial property for the market, it’s best to get professional advice early on – even better before the property becomes empty. This means your property will be well prepared for the market – and you could achieve the best results reflective in your profit margin.
At Mounseys, we may also be aware of requirements that already suit your property – so your property may not even have to go to market before it gets a tenant.
Get in touch to find out how our professional property consultancy can help you navigate the letting of your commercial property – from liaising with solicitors to marketing your property to the right people.