Do you own commercial space? Are you trying to figure out a way to increase revenue to cover the expenses? If you answered yes to these questions, there’s an excellent solution to eliminate some of your financial burdens. Whether you own a restaurant, apartment complex, warehouse, retail shop, or mixed-use building, you can lease it to tenants.
Depending on the size and configuration of the space, you could lease the entire building to one company or create separate internal areas to accommodate several companies. Even if your property isn’t in an ideal location, you can still succeed in getting it rented. This is where Anthony D’Anello, a top-rated realtor in Montreal, can provide insights regarding the different options available.
Leasing a commercial building isn’t just beneficial to you but also to your tenants. There are many reasons why it makes more sense to lease your property than to sell it. However, if you ultimately decide to list your commercial property, Anthony D’Anello has the expertise to assist with that as well.
For starters, this offers great income potential. On average, commercial properties get an annual return off the purchase price anywhere from 6 to 12 percent. The exact figure depends on the location, economy, and various external factors, including the effects of COVID-19. To get quality tenants, ensure the building is clean, safe, and leased at a fair price.
Renting your commercial property creates an opportunity to build professional relationships and networks. Whether you’re the sole owner or part of an LLC, leasing is an excellent way to build strong and lasting relationships with the tenants. Excluding an apartment complex, you’ll get to know other business owners. Long-term, that can prove advantageous to you and the lessees.
This is a great way to build a reputation for you or your LLC. By managing your commercial property correctly, you’ll become established within the community. So, if you want to purchase additional commercial space at some point, you’ll find yourself in a position to better negotiate with sellers and secure loans with lenders.
Leasing commercial space helps build equity, too. As an investment, this will help you financially when the time comes to buy additional properties or retire.
There are advantages to renters, too. At the top of the list, leasing space is more cost-effective than buying an entire building. While this applies to everyone, it’s particularly true for people just getting a business started.
Another benefit: leasing is flexible. While many companies sign long-term leases, others prefer renting on a month-to-month basis. That gives them an out if they determine that leasing for a year or longer doesn’t align with their goals.
Also, companies that lease commercial space aren’t required to carry as much insurance. As the owner of the property, it’s your responsibility to maintain proper coverage. Although tenants also need insurance, they wouldn’t spend as much for protection, which helps reduce their expenses.
To enjoy success as a commercial space owner, allow my real estate company to provide professional assistance. At Anthony D’Anello, we work hard on behalf of sellers, buyers, and tenants in and around Montreal. Whether you want to fill your building with quality tenants or list the property for sale, we have the expertise and passion to help you achieve success.