There’s a mythical beast in the commercial real estate world. Its beauty is unmatched. Its value is beyond words. Some say it may not even exist. Every CRE professional wants one. We’re talking about the perfect commercial tenant.
The only problem? This type of tenant is beyond elusive.
We’ve covered five problem tenants CRE pros hate, but is there a commercial tenant out there that lives on the other end of the spectrum? Or is the perfect tenant a unicorn? Read on to find out.
What Does the Perfect Commercial Tenant Look Like?
Let’s assume for a moment that the perfect commercial tenant exists. What are some of their characteristics? As a CRE professional, what should you look for in a potential tenant? Here are some of the boxes a perfect tenant should check:
- Their finances are in order: a stellar credit history and solid financial foundation are of extreme importance. You don’t want to deal with the common problem of tenants failing to pay their rent on time — it’s a financial burden and waste of time having to track those checks down.
- They are cooperative and communicative: you want to be able to get in touch with your tenants easily, whether it’s for a missed payment or missing document.
- They have a proper plan in place: your tenants should have a business plan that doesn’t set them up for failure. (If you’re in South Florida, for example, a local hot soup company might not be your best bet.)
- They’re compatible with other tenants: how well your tenant gets along with the other tenants in your space is another factor you should consider. You don’t want to drive out your other good tenants because of one unruly or distracting tenant.
- They’re honest: a tenant who plays by the rules is ideal as well. That means operating everything on the table and being honest about even minor things like office furniture, fixtures and peripherals.
- They’re not… weird: you don’t want a business that has a side gig of a chicken farm on your commercial property. The tenant’s business model should be as, well, normal as possible.
Fortunately, even if a tenant doesn’t fit all (or any) of the above criteria, the right commercial real estate software can help landlords better manage them.
How CRE Software Helps with Any Tenant
Finding that perfect tenant can be tough, but if you have the right commercial real estate software in your corner, it can help bridge any gaps. Here are just a few ways it does this for commercial landlords:
- Lease administration: reduce contractual risks while enhancing tenant relations by utilizing data to analyze your tenant mix and track critical points such as first right of refusal.
- Property management: track competitor properties and develop custom prospecting lists of their tenants to optimize yours.
- Reporting management: analyze your tenant mix and lease prospects to see where you stand on the perfect tenant checklist mentioned above.
The perfect commercial tenant may be a unicorn, but the perfect commercial real estate software isn’t. Discover the benefits of Quarem today by requesting a demo!