The Importance of Tenant Mix in CRE
As a commercial real estate owner (CRE) property owner, you want to look at ways to increase the value of your property. Whether you work alone or with a property management company, your CRE property should be marketed aggressively with the proper tenant mix, so you can charge the right market rent. Also, you want to make sure you are properly billing tenants the correct amounts.
With the proper tenant mix, you can increase consumer spending and boost the local economy, which in turn will increase the demand for your CRE. Our team at HOWE Louisville wanted to share with you why it’s important to cultivate a good tenant mix in your CRE property, and how it can maximize its value and the return on investment (ROI).
Understand the consumer – You need to know what the consumers want in a specific market to create the right tenant mix in your CRE property. Research your area and demographics to understand the needs and financial situations of the local population. Look at other local businesses and properties to see what works well and what hasn’t. You can learn from the competition to avoid making the same mistakes. Make sure your tenant mix appeals to the local community.
Fill a void in the market – No movie theater in town? Lack of coffee shops? No chiropractor in under a 45-minute drive? If your local consumers need something and it’s missing from their area, be the one to supply it. Not only will you attract local consumers, you can attract other tenants, as well.
Shield your property – When you create a good tenant mix in your property, you can help shield yourself from market and industry fluctuations. If clothing stores are doing poorly, it may not hurt you as badly if you also have medical facilities, restaurants, pet care stores, etc. in your space. Investment diversification can often shield you from risks.
As the biggest and busiest city in Kentucky, Louisville is the perfect place for investing in commercial property. Louisville’s affluent commercial sector makes it a great place for business owners – there are so many businesses for you to attract to your CRE.
Mixed-used properties are known for their diverse tenant mix. There are several distinct benefits to investing in mixed-use property, but it is often the case that such an investment will need to be aided by professionals such as ourselves. When it comes to finding and purchasing mixed use properties, we are always available to help.
Our commercial real estate services vary widely and cover a huge range of the many different aspects. We know how to help create a great tenant mix. As a Louisville commercial real estate brokerage who provides real estate development and consulting services across all market segments, our team at HOWE Commercial Real Estate knows a lot about CRE investing and buildings.
Commercial Real Estate Services in Louisville?
At HOWE Louisville, we have many years of experience in the realm of real estate brokerage, and we can offer our expertise and wisdom to anyone who should need it.
As CRE brokers and Louisville commercial real estate experts, our team at HOWE Louisville is looking out for your best interests. Our highly experienced team of brokers offer comprehensive support from the first step to the last, whether you are selling or buying a CRE property. We want to help you reach your financial goals with any CRE investment.
Let our team of professionals at HOWE Louisville help you get started on buying a commercial property in Louisville and creating a good tenant mix. We work with buyers, sellers, lessors and lessees across all property types in and around Louisville. To contact us, send us an email or call 502-890-4475.
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