Commercial real estate owners and landlords live and die by their tenant mix.
Though the market is vibrant, it is also volatile right now, and it’s important to make sure that the companies leasing space are kept happy. This can be challenging in the current commercial real estate environment, as spaces need more and more customization to succeed.
Let’s take a closer look at a few specialties and how they can attract and retain tenants.
RetailThe phenomenon of experiential retail is not to be ignored. These days, a shopping center needs to be more than a place where people expect to simply go and make a purchase. Tenants now attract consumers through environments where they can interact with others, see product demonstrations and test out devices and products. Shoppers need a reason to physically enter a store, rather than look for items on Amazon or other ecommerce sites.
OfficeJust as retail has evolved, so has office space. Gone are the days of cubicle cells for many of these tenant; the rise of millennials in the workforce, coupled with an increased reliance on technology and mobility, has changed the game for many office landlords. Companies are looking to more creative office spaces and coworking locations. To attract and keep tenants, office owners must look for spaces that foster collaboration, culture and even health.
IndustrialNot only is mixed-use industrial getting more popular, but with the rise of e-commerce, more and more tenants need same-day delivery and express services to meet the demands of their consumers. This makes finding a good location for this sector more important than ever, although it’s not always easy to find in close enough proximity to the city.
In addition, SIOR says that industrial building heights are increasingly vital to tenant flexibility and success. The previous 32-foot-high-roof standard for assets has been pushed up to 36 feet. Again, this comes from a need for increased storage by ecommerce tenants.