What is the Easiest Way to Find Commercial Tenants?
I have a few spaces available in Bronx, NY but am having trouble finding anyone that actually wants to rent. We’ve used some brokers but it’s been largely ineffective. Do you guys have any tricks for finding new tenants to occupy?
[{"id": "hwxggx0", "text": "what kind of spaces are we talking about? is it retail?", "replies": [{"id": "hwxgock", "text": "It\u2019s somewhat unconventional. One space is a basement space that we currently have as a pseudo venue that host parties and conventions. The other two spaces are each 10,000 square feet, one is a second floor and the other is a third floor. It\u2019s all zoned commercial. For the basement we would love a church to occupy on unused days and the upper floors we\u2019d want a long term tenant.", "replies": [{"id": "hwxh1mk", "text": "seems  very difficult to rent, I would suggest converting the two spaces into a modern office and rent them out, use office leasing firms", "replies": [{"id": "hwxqwa5", "text": "Thank you for the advice", "replies": [], "depth": 4}], "depth": 3}, {"id": "hwyf9m6", "text": "You left out what is the 1st floor being used for. You also didn't mention if there is elevator service. A lot of office tenants prefer being in a purpose built office building instead of 2nd or 3rd story over a retail shop due to noise and less amenities. I would focus on leasing the 2nd and 3rd floor and market the basement as additional lease option for storage for an office tenant or market as storage to other nearby tenants. Unfortunately the basement is not going to get much rental value.", "replies": [{"id": "hwynost", "text": "The first floor is 11 retail tenants, but the ceiling are very high. You can\u2019t hear anything from outside when inside the upper floors. There\u2019s no elevator, we will have to keep that in mind.", "replies": [{"id": "hwzcq86", "text": "You will need to look at market rent comps very carefully. A business owner in a suit does not want sweat through his suit going up a 3 story walk-up on a hot summer day. And these business owners are making the leasing decisions. Keep in mind higher floors are less valuable without an elevator. Elevators are the invention that made  higher floors more valuable. Additionally with ADA ( american disability act) some businesses will refuse to move to a space that may mean losing existing employees or having a lawsuit with potential discriminating against potential handicap employees. This even applies again for some moderately disabilities like arthritis that would rather quit instead of walking up 3 flights of stairs every day.\nAs for the basement space. It might make sense to approach the retailers for potential inventory storage options.", "replies": [{"id": "hwzd8lm", "text": "Really appreciate the advice.", "replies": [{"id": "hx9wups", "text": "I just priced converting a freight elevator in Queens to a passenger elevator (4 stops - basement to 3rd floor) and got estimates from $250k to around $500k so elevators are not cheap.  What is the exact use group on the C of O for the second and third floors?  You might be required to put in an elevator to change the use group to office space - otherwise figure out what is legally allowed and go after those tenants.\n\nI'm having the same issue with a second floor space a little bigger than yours and probably going to split most of it into 300-500 sq foot \"creative\" spaces to comply with the current use group.\n\nI'm on Loopnet, have good signage and a good relationship (but no exclusive - bad experiences) with several salespeople at a couple of long standing local CRE firms.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hx1g5ss", "text": "Hey OP, I am not sure if you\u2019re familiar but a huge trend in my market recently has been \u201cghost grocery/convenient stores.\u201d Basically, a company (i.e. JOKR) stocks the space like a traditional store, but it is only used as storage for mobile ordering. Riders and drivers collect items that customers order via the app and the space isn\u2019t open to walk in customers. \n\nIt\u2019s an interesting business model, but these companies are renting space like crazy. Since there\u2019s no foot traffic, a basement space might be perfect. Food for thought.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hwxh4oe", "text": "2 thoughts - Your rate isn't competitive enough and your spaces are too large. Many many many companies have scaled back their office foot print - at 10,000 sqft you're going to need a pretty decently successful company to pay the rent which eliminates tons of potential renters. I promise you four 2,500 sqft offices will lease quicker than one 10,000 one.", "replies": [{"id": "hwxkc1d", "text": "This, don\u2019t be afraid to toss some TI in to make it happen. But offer as little as 2500 but up to the max space. Shift the smaller tenants who want a lesser rate can be shifted upstairs or downstairs depending on how low the offer is.", "replies": [{"id": "hwxr28d", "text": "Yea, we are willing to offer a lot to get the spaces rented as right now they are just sitting there. We will consider splitting it up for sure.", "replies": [], "depth": 3}], "depth": 2}, {"id": "hwy0uge", "text": "My folks took a 7500 space and made small one person offices with a common area. Filled up quick. More dollar per square. Lease terms are month to month. If they lose one of (i think) 20 tenants, its not a devastating hit", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwxiqi6", "text": "What brokerages have you used? Larger like CBRE or more boutique?", "replies": [], "depth": 1}, {"id": "hwxq62k", "text": "I oversee quite a few commercial properties ranging from office parks, retail strips and now office/warehouse. Most of my new tenants come from my current tenants. Also getting it posted on the MLS, costar/loopnet, crexi, Facebook market place and Craigslist helps get your info out. Also emailing it to other brokers in the area. \n\nCraigslist/Facebook market place is usually alot of b.s. calls but it helps get the word out.", "replies": [{"id": "hwxqq7y", "text": "Thanks, I appreciate the advice", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwxvrvf", "text": "Advertise properly!\n\nBig sign. Clear information. Be upfront of what the rent cost is. Good pictures.\n\nDepending on the tenant &amp; lease length, I will toss in 3-6 months of \"free rent\" to get them going and so they can get cash-flowing.\n\nAnd just remember that everything is negotiable, especially commercial.", "replies": [{"id": "hwy7a5g", "text": "We\u2019ll work on advertising, appreciate the advice", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwxycw0", "text": "What feedback have you gotten from those brokers?", "replies": [], "depth": 1}]