As we find ourselves at the halfway mark of 2024, it’s a good point to look back at the year so far and analyze trends, challenges, and strategies for success. Much like the rest of the country, Atlanta continues to experience volatility in the commercial real estate market. Although much of the country is experiencing challenges, Atlanta faces a record high of 32.4% in commercial real estate availability. As unfortunate as this is, hope remains on the horizon.
At EpiCity Real Estate Services, we have been fighting the same battle of finding and retaining suitable tenants for commercial real estate spaces. However, unlike the majority of the market, occupancy rates at properties managed by EpiCity remain high at 97% for our Powers Ferry Business Park and 100% for our Armour Junction and Curie Drive properties. Compared to the industry average of 76%, this success stands as a superb achievement and a testament to our commercial property management services.
Tenant Retention Strategies
It’s no secret that renewing an existing tenant’s lease is more efficient than finding a new tenant. The space remains occupied without any period of transitional vacancy, which provides a stable stream of income. Aside from the continuity in rent payments, property owners also save time and money by avoiding the tenant-sourcing process.
Tenant retention is never a given, and property owners must work to gain loyalty and continued occupancy. At EpiCity, we manage our commercial properties using long-standing strategies that have proved time and time again to result in success.
- Offer lease incentives: Giving tenants a bonus for renewing their lease gives them a reason to stay. The incentives can range from lease renewal bonuses, such as rent discounts or gift cards, to something more intangible, such as flexible lease terms to accommodate tenant needs.
- Enhance property amenities: Modernizing your property and adding desirable amenities will increase tenant satisfaction, which in turn increases tenant retention. Each property is unique, so examine the specific weaknesses of your space and improve them. A good strategy is to ask your tenant directly for a wish list. You may also want to consider comparable properties in the area to identify amenity gaps.
- Promptly address tenant concerns: A supported tenant is a happy tenant. Keep on top of any maintenance requests, security concerns, and other disputes that may arise. We recommend implementing an online service portal to help track and resolve tenant requests.
Find Success with EpiCity Real Estate Services
As the year progresses, Atlanta’s commercial real estate market is expected to navigate ongoing challenges such as high availability and economic uncertainties. Maintaining positive relationships with your tenants and taking proactive retention steps is an ideal way to ensure that your property remains occupied.
Although the tenant retention strategies outlined above serve as a starting point, successful implementation requires time, dedication, and expertise. EpiCity’s performance during an otherwise down market highlights remarkable resilience and strategic management.
Our experienced commercial property management team can help improve and maintain positive relationships with your tenants, resulting in longer leases and less stress. If you are ready to take advantage of tenant retention strategies and secure leases in an uncertain environment, we’d love to talk to you.