The commercial real estate landscape is unique. Beyond the sheer diversity of property types and developments, key players like property owners, business owners, lenders, and all levels of government each directly influence the ever-evolving industry.

These factors, among a wide range of other variables and industry complexities, can present all kinds of risks or potential issues for investors. Luckily, there is support available.

In this blog, we’ll go over common challenges that commercial property owners face and how partnering with a dedicated management team can solve them.

Curious about InTrust’s encompassing commercial property management services? Click here to find out more.

Tenant Sourcing

As a commercial property owner, one of the most critical elements of your investment is the tenants you choose to lease to. However, in the commercial realm, finding favourable candidates isn’t as simple as listing your property online and waiting for replies. Instead, sourcing and verifying high-quality tenants requires a thoughtful strategy and due diligence.

Mitigating this challenge, a professional management company can connect you directly to the best tenancy candidates based on your preferences. They’ll also refer to industry-specific data and their professional experience to determine which types of businesses are most likely to prosper on your property. Finally, after identifying the best candidate(s) for your building, they’ll take on the involved tenant verification process – ensuring their finances and personal information are accurate and in order.

One of the most compelling reasons to work with a professional commercial property manager during the tenant sourcing process is industry partnerships. Unlike (most) independent commercial landlords, established management groups will have long-standing relationships with national brands and franchisors. These connections can diversify your pool of candidates and help you land a well-known business – which in turn, could be a compelling value-add for other potential tenants.

Creating Contracts & Lease Agreements

Once you’ve found the right tenants for your property, you’ll need to sign them to a lease. However, unlike residential real estate, there’s no standardized lease agreement for commercial properties in Ontario. This means you’re required to draft bespoke documentation from scratch for each tenant.

As your dedicated industry guide, a professional property management service can assist you in drafting a protective lease agreement. Negotiating on your behalf, they’ll work out the fine print with each tenant, outlining critical terms and conditions that safeguard your investment. They’ll also collaborate with a commercial real estate lawyer to ensure that any documentation also protects your interests on a legal basis.

Looking to make an informed commercial real estate investment? Explore these related readings to build up your knowledge base.

Tenant Communication

Signing reputable, high-quality tenants to a lease is a great starting point. However, it’s only a small portion of protecting your bottom line as a commercial investor. Effective tenant management is an essential part of optimizing your investment and it’s a more in-depth process than many property owners realize. Just like you, your tenants are also working towards their own financial and business goals. As a result, they each have their own needs and expectations from you and your property.

For instance, it’s not uncommon for commercial tenants to request modifications to a space to support their business vision. This could be installing new light fixtures, adjusting ventilation for food preparation, or bolstering security precautions with their particular unit. As an owner, it can be hard to decide what’s allowable or against your best interests. Similarly, if there are any issues with the property, tenants will be expecting swift fixes and communication to ensure the problem is resolved.

Maintenance & Upkeep

Maintaining the physical health of your property is another major facet of a successful investment. However, given the complex nature of commercial properties, general upkeep and repairs aren’t always easy to navigate.

Failure to look after infrastructure can negatively impact tenant retention, reduce property appeal, and in some cases, result in code infractions. Further, keeping your property in exceptional shape can involve substantial expenditures, meaning you’ll need to budget wisely.

There’s also a vendor relationship component. Challenges arise when vendors underperform, fail to meet contractual obligations, or have limited availability during emergencies – all of which can evolve into larger, more significant issues with tenants or the property itself.

Once again, a professional commercial property manager can help with this. Beyond just eliminating the stress involved with coordinating maintenance and repairs, the right management team can also make sure all projects stay on budget.

InTrust’s Commercial Property Management Services

Searching for an all-in-one management service from leading commercial real estate experts? Look no further than InTrust.

Going above and beyond traditional management groups, we’re redefining industry standards by bringing commercial property management into the twenty-first century. Our end-to-end guidance can seriously elevate your ROI through operational efficiency, intelligent tenant sourcing, streamlined income collection, relationships with vendors and contractors, and more.

Every investor – and every property is unique, that’s why our services are built to meet your specific goals. When you partner with InTrust, you remain in control of your investment while we handle the details to maximize your ROI.

Searching for an uncompromising property management experience? Get expert guidance from our team. Call 289.312.5451 or reach us by email at Julia@InTrustCRE.com.

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