Retailers usually choose not to extend their lease for two main reasons: weak market or high lease cost. The vacant spaces aren’t only income loss to landlords; in high numbers, they give the bad impression that a commercial building is a less desirable area, driving both consumers and investors away. If you’re the owner of an Anchorage commercial real estate, here are ways to fill those vacant spaces:
Subdividing. If you have a very large retail space, you can divide it to entice smaller business owners, particularly the startups, to set up shop. These smaller interior retail stores can attract entrepreneurs looking for cheaper alternatives to bring their product to the market. Plus, variety creates greater traffic, benefitting everyone within the retail area.
Tenant expansion. More stores equal more sales. Encourage your existing tenants to lease another space for another store or for expansion. For instance, one space is for the main store, while the other is intended for promotion sales or grand openings. Be sure, though, to offer them separated spaces with high traffic for greater exposure.
Nontraditional Tenants. Create advertisements that show many ways your vacant space can be used. Nontraditional tenants may include gyms, technical or professional schools, medical professionals etc. Target those located in office buildings or stand-alone buildings with low traffic. For instance, if you’re planning to lease the vacancy to pediatricians or family dentists, your pitch can go, “Moms can shop while kids are finishing their appointment.”
Temporary rentals. You can offer your commercial space to holiday retailers, companies conducting their year-end sale, annual fundraisers, and large events like marathons, health fair or job fair. Think of a flea market model where prospects are given the chance to introduce their new products or promote their services.
Art pop-ups Regular renters bring in profit while artists give your commercial area the publicity needed to create greater traffic, which in turn attracts the source of profit. Artistic creations breathe life to those grey, empty spaces—just exactly what you need to attract greater swarms of people. Temporarily offer spaces to artists at a discount rate. If possible, organize educational tours for their exhibits to not only help promote their art, but to create deeper engagement with area visitors as well.
A great option if you’re not that adept with tenant sourcing is to entrust the function to Anchorage property management experts from firms like Graham Commercial Real Estate. These specialists can create and execute leasing strategies to help you achieve business financial goals. They may also provide the necessary tenant support and property maintenance for an improved retention and handle the collections in your behalf.
Source: What to Do With a Vacant Retail Space? SmallBusinessChron.com
Source: No Vacancy: Turning Empty Spaces Into Cultural Pop-Ups, Thirteen.org