How Do I Attract Tenants to My Building?

Whether you have 100 percent occupancy in your office building or are actively looking to fill vacancies, recruiting great tenants is an ongoing process. If you wait until an existing tenant decides not to renew their lease, you risk lost revenue in the time between one client’s departure and the next one’s arrival.

What can you do to make your building more attractive than the one down the street? Adopting and advertising this building amenities list helps bring quality applicants to your office-tenant pipeline:

1. Environmentally Sustainable Features
Sustainability certifications and energy-efficient lighting and appliances save you money in the long run and can catch the eye of environmentally conscious companies.

Happy tenants are more likely to renew their lease, and a survey of office tenants in Washington, D.C. found having a LEED or EPA ENERGY STAR certification notably increased client satisfaction. You may think these kinds of certifications are only possible for new buildings, but both ENERGY STAR and LEED have programs for existing construction.

Retrofitting your building may also qualify you for tax rebates and grants, offsetting the cost of investing in greener appliances and energy options.

2. Convenience
Access to great coffee and varied lunch options is important for every company seeking office space, as it impacts their employee’s satisfaction at work and their productivity.

However, every location comes with a trade-off. If your building is located in the heart of the city, lunchtime options are plentiful, but so is the congestion and long lines workers face to get food. Conversely, suburban office parks offer a lot more room – which means the nearest restaurant may be further away, extending the amount of time employees are away from their desks.

While you can’t change the location of your building, you can influence the amount of convenience it offers through better building amenities. A permanent restaurant installation or hosting a daily rotation of popup meal offerings in your building’s lobby can be a fantastic draw for office tenants

3. Incentives for Existing Office Tenants
Referral bonuses don’t have to be limited to corporate sales teams. Consider offering your current tenants a discount on their rent or some other incentive to assist you in filling office vacancies.

Keep in mind, real estate laws regarding compensation for referrals vary state by state and are extremely nuanced. Some are very specific about “finder’s fees,” including who can receive them, whether or not that party has to be licensed, and the maximum amount of a fee.

For example, New York state requires that compensation made in a real property transaction be paid to a licensed salesperson or real estate broker, according to lawyer Edward Sumber, of Sumber & Dolgetta law firm. Check regulations in your area to ensure your referral program is above board.

4. Negotiable Lease Terms
While you may prefer long-term leases, not every potential tenant is willing or able to commit to a multi-year lease. As Tanner McGraw points out in a Forbes article, every year brings thousands more new tech start-ups. While they can be cash strapped and volatile – acquisitions, buyouts and busts are the nature of their industry – these start-ups can also become extremely lucrative partnerships.

“These emerging businesses have a lot of growth potential: just think, one of them could be the next Airbnb or Pinterest, and the relationships brokers cultivate while they’re just starting out are critical to keeping their business as they grow,” McGraw writes.

Having a strong relationship with a tech office tenant also carries the possibility of rapid growth and thus, a greater need for office space. McGraw recommends “playing the long-game” and showing flexibility on the length of the lease. Discussing these shorter leases up front allows you to better plan for the future, rather than risk getting caught off guard when a fledgling company has to break their lease.

The nature of office property management and the features that attract tenants are shifting. Companies want more dynamic office spaces, better building amenities, and landlords who are in tune with their needs. What’s your next big move to stay ahead of the curve and bring in more tenants?