Increasing occupancy in a vacant office complex
We are considering the purchase of a 50% occupied office complex that is an REO. About 30,000 sq ft total rentable sq footage. It is class B+, the existing tenants are very stable and medically oriented. We'd like to move in more medical tenants, but that may be a challenge, above all, we'd like to see long term, stable clients. Also, if it matters, if we acquire the property, we'll own the quorum, and can become the HOA, which means we can take in the income and manage the park as we see fit.
I'd like to rank these by highest effectiveness, lowest cost, here is an unordered list of ideas.
Hire a well connected leasing agent, and offer them a handsome commission In fact, the leasing agent that we may hire, may not be the "best" agent for the job... Do commercial leasing agents do co-ops on leases? Can we attract other leasing agents that have ready clients?
Offer below market rents or generous TIs to get occupancy up to market. Increase rents over time within these contracts. Once occupancy is up, begin increase advertised rents. The current owner (the bank) would not budge on rents, asking $12-$14/ft/yr, which is "market price." We can make a profit by charging as low as $5 (we don't want to shoot ourselves in the foot though).
Add a crosswalk. There is a shopping center with dining options across the street, but no cross walk attached to the sidewalk along the entire complex. I will look into having a cross walk or two added. Aside from increase quality of life for the tenants, it can cause "good" rubbernecking as people slow down for the cross walk.
Improve the signage The current signage is unsatisfactory, it is small and hard to read from far away or even across the street. Something like this 1, or this 2
Invite food trucks I am not sure if the area has enough traffic for a food truck business, but I want to try to invite them to try it out during the lunch hour. I think the tenants would get a kick out of it.
Build/offer covered parking Potential tenants might get a kick out of shaded parking, for themselves, and their customers, and it isn't that expensive. Can use pipes and sheets, or metal roofing.
Value add tenants Like office supply, printing, Mailbox etc, drycleaning, other ideas?
Solar panels Not sure if this is profitable, will only do so if it is... Although perhaps some tenants might give a damn, i'm not willing to bet on it. If this can be done in a way that we increase our bottom line, then I'm for it. If not, then I'm not. Will need to get an estimate.
Website List businesses in the park with their contact info, pictures, and vacancies, generate leads for vacant units.