When tenants leave a commercial space, filling these vacancies can become a costly endeavor for property owners. Aside from profit loss they endure between tenants (on average, vacancies last 40 days), there’s a slew of other expenses to consider:
- Marketing the property to attract new tenants (online and in print)
- Maintaining and cleaning the commercial space to prep it for a new tenant
- Processing paperwork and obtaining reports to screen/approve applications
With these costs in mind, it’s easy to see why high tenant retention rates are a critical metric of success for commercial property owners. Steady cash flow and fewer administrative and repair costs translate into higher profit margins for commercial properties — and in turn a more sustainable business model.
That leads us to the focus of this blog post. Based on the value that high tenant retention rates bring to the table, we wanted to share some tenant retention ideas for property owners to utilize.