Q: I have a building for rent. I want the property to be attractive to tenants, but I am on a limited budget. Where do I start?
A: When marketing commercial real estate, there are three main concerns you need to address regarding property upkeep. These are; the general appearance of the property (“outward appearance”), the perception of previous maintenance and of course any security issues. These three items will affect a potential tenant. That impact can be positive or negative.
I was recently contacted by a landlord who was having difficulty renting his building. I agreed to inspect the property with him and make suggestions. Before entering the building, we had to walk across what was left of a lawn to avoid a bush that had completely covered the driveway. Then, there was a dead bird in front of the front door of the building. Believe it or not, the interior was worse; Damp smells, peeling paint, debris, lamps that don’t work, and a dilapidated bathroom. What photo! No wonder potential tenants ran screaming out of the building.
Appearance is vitally important. As they say, you will never get another chance to make a first impression. However, while your property should be clean and presentable, you want to avoid expensive renovations, such as new office space or even new carpeting, whenever possible, which are very specific to the needs of your buyer or tenant. This is the art of a great presentation on a limited budget.
We recently renovated an industrial building in Ronkonkoma for precisely this reason. The building was vacant and not leased. Outside we remove accumulated debris and mow the grass. Dead bushes were removed and replaced. Garden beds were weeded and mulched. The parking lot was sealed and the stripes were repainted. Exterior staff doors were painted.
When moving inside, we made sure there were no glaring issues that would indicate a history of neglect. For example, stained ceiling tiles often indicate a leaky roof or plumbing problem. Doors that drag, plumbing that doesn’t work, heating and air conditioning units that make noise or don’t work all indicate a property that has been neglected. In this case, we repowered or replaced light fixtures, replaced missing or stained ceiling tiles, checked all other mechanicals, and generally made sure everything was working. And hopefully, it goes without saying that this is the time to address security issues. Items like potholes, dangling power lines, and greasy floors need to be cured.
