Where do you find tenants? Commercial space not leasing
I’ve got a 10,000 sq ft building mostly leased up with two final units we are struggling to find tenants for. We had hoped for a cafe but with covid they want us to basically give a turnkey space at low rates. I’m going to start cold calling. Other tenants are hair salon, daycare, deli and some professional offices. These have been sitting empty for 8+ months. Located in a light industrial/commercial area. I don’t want to have to undercut the market to get a tenant. It’s a brand new building in a great location. Both 1200sq ft units side by side, not demised. Commercial realtor seems to have given up. 

Any creative ideas?
[{"id": "hjyea4o", "text": "Seems par for the course. I've had space that should hypothetically lease quickly sit for a year. Either you make your rate more competitive and bring it to market rate over the term or you let it sit empty until you find someone willing to pay market rate. It's that simple.", "replies": [], "depth": 1}, {"id": "hjyfulk", "text": "Make up some flyers and canvass the area door to door to find types of tenants you\u2019re interested in.", "replies": [], "depth": 1}, {"id": "hjygu3g", "text": "It\u2019s always the last space or two that are the worst to lease out.", "replies": [], "depth": 1}, {"id": "hjygvxo", "text": "Craigslist or loopnet.", "replies": [], "depth": 1}, {"id": "hjygyt9", "text": "Maybe find a new commercial broker? What kind of location is it (city, suburban, rural etc)? Can always get crafty with rent and do base plus percentage to get someone in and performing.", "replies": [{"id": "hjymf6g", "text": "It\u2019s city location on a main road", "replies": [], "depth": 2}], "depth": 1}, {"id": "hjyhhpq", "text": "If you haven't gotten any real action in 8 months, you aren't undercutting the market by asking less, the market has dropped and you are overpriced. This assumes of course the space isn't funky, you have good visibility, and have marketed appropriately. \n\nIf your market hasn't dropped out and other similar properties are leasing well while you get no action, threaten to fire your broker. Could be steering your leads to other projects because they think yours is almost full so you won't care/notice.", "replies": [], "depth": 1}, {"id": "hjyhp0z", "text": "Reddit", "replies": [], "depth": 1}, {"id": "hjyizx4", "text": "Loopnet if not already there, as well as targeted ads on FB. Rather than spending money on the ads may make more sense to lower term at least for the first month?", "replies": [], "depth": 1}, {"id": "hjyjm4w", "text": "Try virtual staging in your ads, get a few different set ups for approved tenants and mail those out to existing businesses. \"Grow Your Business Here\"", "replies": [], "depth": 1}, {"id": "hjyjnpa", "text": "One thought is the boots on the ground approach could help. Going into existing businesses in the area and introducing yourself. Another thought is, just as an agent utilizes their sphere of influence, do you know other owners that have similar buildings? They could have potential tenants not renewing.", "replies": [], "depth": 1}, {"id": "hjyknrx", "text": "Rather than lower your rate, which lowers the value of the whole property, give X number of months free then it goes to market rate.  A cafe would have probably bit if you had offered them 8 months free (then market rate), and you'd be in no worse shape than you are today.  But now you ate the rent for 8 months and still need to go out and offer a deal.  You need to offer them enough months free to get them mentally past the pandemic - if you think the pandemic will last another 4 months than offer them 5 months free.  Etc.\n\nIf you aren't getting bites on the \"level\" that you are advertising you need to go further up the chain.  Find businesses earlier in the cycle.  \n\nFor example, go look at listings for sale in your area on Crexi, look at what properties have tenants that are coming up for lease renewal soon, walk into that business and talk to the manager or owner and offer them to move to your (new, modern, well-cared for) property at their same rate, or even at a few months off.  Poaching is probably not polite, but it is business.\n\nAnother option is to try to find out who might be starting businesses soon. Meetups or networking events.  Make friends with SBA lenders, business brokers, franchise brokers, etc. in your area.  The people with big networks like this are the people who are making a killing in commercial, they are constantly filling + selling properties.\n\nFinally, if all else fails, use the space yourself.  You could set up an absentee or semi-absentee (1-2 employee) business in it (laundry, vending, mailbox rental, copymat, spraytan, etc etc) and operate it for a year, then you sell the business for triple NOI AND with the lease terms in place you designate (because you signed the lease with yourself).", "replies": [{"id": "hjymd5m", "text": "Thanks for this quality answer you make great points. The free rent solves my devaluing question. I\u2019ve been trying to figure out where to find new businesses but then we need 2 years on the books the leverage the lease. Poaching might be the first step! Ah", "replies": [], "depth": 2}, {"id": "hjzjtwf", "text": "What type of value are you using where free rent magically raises a property's value?", "replies": [{"id": "hjzmtrd", "text": "A 5 year lease at $5k/month with the first 3 months free is going to count as $5k/month income.", "replies": [{"id": "hjznoka", "text": "If thats how you're doing it you are making a mistake.", "replies": [{"id": "hjzs0xn", "text": "Tell me more - my bank agrees that free rent doesnt affect building value so what are you suggesting?", "replies": [], "depth": 5}, {"id": "hjzs8le", "text": "Imagine it's a year from now: A buyer isn't going to look at a lease with 4 years left on it at $5k/mo and be concerned that you took a bath for a few months (a year ago) \"during the pandemic.\"\n\nThey are still going to count it as $5k/mo in their pocket, because that is what the lease legally obligates the tenant to pay them.\n\nHave you ever wondered why every apartment complex does \"first month free\" instead of reducing the rent?", "replies": [{"id": "hjzwn5z", "text": "Value's are specific to dates for a reason. You are simply doing inaccurate analysis. \n\nI'm not arguing against giving out free rent. There are various benefits to doing so. One of which being apartment buildings giving free rent because there are generally limits to the amount they can raise rents. Free months in the beginning allow them to charge a tenant a lower effective rent while having the base rent high resulting in a higher return on a 3% annual rental escalation.", "replies": [], "depth": 6}, {"id": "hk0p1pc", "text": "&gt; Have you ever wondered why every apartment complex does \"first month free\" instead of reducing the rent?\n\nThat's usually implemented as a discount on the monthly rent throughout the lease. The cost comes out of marketing budget.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hjym5hg", "text": "Thanks all. I\u2019m going to have to get it in front of more people, probably going door to door through the area is the best thing to do. I appreciate knowing it\u2019s unheard of for the last units to take time. Also giving free rent vs lower rates solves he issue of lowering the value of the building.", "replies": [{"id": "hjyywhr", "text": "If you plan to hold the building for a while, cheap rent for \\~24 months also won't nuke the long term value.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hjymrv7", "text": "ReSquared: New prop tech platform geared towards filling commercial vacancies. Essentially, new age canvassing. Not sure of the pricing, but for brokers/owners who have multiple units vacant - this platform is a game changer.", "replies": [{"id": "hjyxwot", "text": "Love this potential but I\u2019m in Canada", "replies": [], "depth": 2}], "depth": 1}, {"id": "hjz1ugv", "text": "Cold calling. What state are you in?", "replies": [], "depth": 1}, {"id": "hjzdghd", "text": "Hand out fliers to centers that surround yours in a three mile or five mile area.  Get on google and start cold calling what categories you think fit this space.\n\nYou could also do a broker blast offering a higher commission rate than normal.\n\nGive half rent and free rent to help get started.\n\nHire a new company", "replies": [], "depth": 1}, {"id": "hjzjn91", "text": "Have you hired a broker?", "replies": [], "depth": 1}, {"id": "hk00efx", "text": "When I was looking for a space, I was looking at loopnet, Craigslist, facebook market place.\nAnd I was lookimg where i dont need to pay brokage fee. Show photos of the space.", "replies": [], "depth": 1}, {"id": "hk062lu", "text": "I've always had great success with Craigslist and window signs.\n\nIt's surprisingly effective, and cheap.", "replies": [], "depth": 1}, {"id": "hk0dvqa", "text": "That is very much everywhere.  You do not want to lease to problematic tenants. Can not even get rid of them when not paying.  Court is booked for 6-8 months for eviction hearing.  Judge is often on tenants side.", "replies": [], "depth": 1}, {"id": "hk2skbs", "text": "If the listing broker has given up, switch horses. They probably don't want the listing at this point if they haven't closed a deal in 8 months.", "replies": [], "depth": 1}]