Let us help you find a tenant for your commercial premises
One of the proven methods of investing capital is the purchase of a commercial property. They are most often offered by housing developers on the ground floors of apartment buildings developed by them. The question that we will try to answer in this article is: “What is the best approach to renting such premises?”
“We have the necessary knowledge and contacts to find a suitable tenant. We have commercialised thousands of square metres of space, mainly in our investments, so we will be happy to use this experience to support individual owners. We are not a real estate agency, so our activities are not limited only to placing an advertisement on websites and posting information on the shop window. We are a company that comprehensively deals with the commercial real estate market,” emphasises Marcin Rudziński, a member of the board of Higasa Properties.
I have premises and what’s next?
So, you have commercial premises and are wondering what to do next? In order for them to start generating income, they must be commercialised; that is, you need to find a tenant. Based on our many years of experience, we know that some of the owners of such properties, already at the stage of purchase, presume that they will for sure find someone willing to rent them, which often turns out not to be the case. It is not “for sure”, and the term “someone” also requires clarification. Because this “someone” must be able to accept various conditions, not only financial ones.
That is why, at Higasa Properties, we provide support to clients already at the stage of making a purchasing decision. We can prepare an appropriate report, location analysis in terms of commercial potential, or commercial evaluation of the area. We can also indicate which industry sector could be interested in renting.
Our contacts are mainly representatives of retail chains, and we primarily conduct activities in this regard. Why is that? Because retail chains guarantee the most stable terms of contracts, especially when it comes to time. Most often, those are contracts of several years, securing the owner in the best way, giving them a guarantee that month by month, for years to come, they will receive rent payments. In addition, they are indexed by the inflation index. These are the two key arguments in favour of commercial properties rather than residential properties, which do not provide such stability and predictability of return.
A wide range of benefits
Apart from the aforementioned report, another important point of collaboration is the taking over by Higasa Properties (of course with the owner’s consent and under the power of attorney granted by them) of all negotiations leading to the commercialisation. In addition, we offer ready model contracts containing important requirements on the part of the retail chains. Having worked for so long in the commercial real estate industry, we know the expectations, the existing provisions, as well as what is acceptable – and what is not – during commercialisation. Naturally, all arrangements are also made with the owner, based on their expectations.
We also know the requirements for the premises and its surroundings (such as load requirements on supply routes), space, and location.
We also operate in the other direction: representatives of retail chains turn to us with questions about whether we have space in specific locations. We are aware that it is more convenient for large tenants to sign lease contracts in packages, so several or a dozen contracts at the same time have a greater chance of being accepted than one. This also means higher rates, i.e. higher profit for the owner.
What cannot be converted into material benefits is saving time. Higasa Properties, from the moment of signing the cooperation agreement, comprehensively deals with the agreed scope of activities, according to a jointly planned schedule, relieving the owner of this obligation.
Earn passively, we’ll take care of everything
In addition to commercialisation, an important element of gaining passive benefits from commercial real estate is proper facility management. Here, too, our experience is useful. In total, several thousand square metres of space are under our care. You can entrust us with tasks such as regular contact with tenants, supervision of cleaning and renovation, settlements, and taking care of the technical condition of the facility. This means that no effort is needed on the part of the owner; hence passive profit.
So, even at the stage of the purchasing decision, or after the purchase, we offer clients collaboration leading to commercialisation, i.e. finding a tenant for the commercial premises. We adjust the options and actions to each investment individually, as part of the direct arrangements and needs of investors. We encourage you to contact us via the form on our website. You can read more about commercialisation and what is important throughout the entire process in one of our previous posts.Back