You're facing slow leasing season challenges. How can you adjust rental pricing to attract more tenants?

To tackle slow leasing season challenges, adjust rental pricing by offering competitive rates and highlighting the value tenants receive. For example, a lawyer could advise: "Given the current market, you might consider negotiating with landlords for better terms. Look for properties offering seasonal discounts or incentives like a free month's rent. Ensure the rental price aligns with similar properties in the area. If a landlord is reluctant to lower the rent, suggest a short-term lease with the option to renew at the current rate, providing flexibility and a potential future discount. Always review the lease terms carefully to protect your interests."

It takes an experienced leasing agent to get you through these ups and downs. Ideally, the rates never go down, they just become stable and if you compare the market dynamics to inflation, then of course the effective rental rates will be low. But If you have leased your space on a long-term basis with a strong agreement clauses that protect you against the market odds then you need not worry.

Commercial leasing LL and agents should consider leasing incentives and price per SF reduction. This will allow businesses to meet their financial goals, serve the community, and minimize vacancies. It seems that the Metro Atlanta market is not profitable for most businesses. Consideration should be given to our current climate and the commercial industry has an opportunity to take the lead and set a strong example to continue to grow the Metro Atlanta Market.

Lawyer's Advice: Given the slow leasing season, consider adjusting your rental terms to attract more tenants. First, offer flexible lease durations, such as month-to-month or shorter-term leases, which can appeal to tenants unsure of long-term commitments. Second, provide a discounted rate for the first few months or offer move-in incentives like a free month's rent or waived fees. Finally, consider allowing more lenient pet policies or including utilities in the rent. Example: "John, given the current market, I recommend offering shorter lease options and a discount for the first two months to attract tenants quickly. Including amenities like free lessons or equipment rentals can make your pickleball property more appealing."

Flexibility can be just as appealing as lower prices when attracting tenants. Offering shorter lease terms or options for lease renewal at a fixed rate provides potential tenants with the assurance of not being locked into long-term commitments, especially in uncertain economic times. Additionally, incorporating flexible lease structures—such as allowing subleasing or customizing the space—can make your property stand out from the competition and attract a broader range of tenants.

Flexible terms are also the ideal approach in slowing down leasing season while maintaining rental income from properties. By offering business flexibility, such as There was no rise in rent for the next few years with an upper limit or no lock-in commitment for a set period. In an unstable market scenario, flexibility will provide tenants with comfort about renting costs.

It is really advisable to be flexible while drafting and negotiating rental agreements at the end of the day you need money to continue running your project as well as happy customer who will pay monthly. Create atmosphere that will keep customer happy

I'll quote an example of how we tackled the covid situation. During covid, the leasee client wanted to vacate the property to save on real estate cost as no one was allowed to come to office. We met the client and negotiated our terms that we will allow them a 6 month rent free period and in exchange the client agreed to give us an additional 12 month lock-in post 6 months of covid lock down. That worked wonders as post lock down we did not have to look for a new client.

To overcome slow leasing season challenges, offer attractive incentives such as rent discounts, flexible lease terms, or fit-out allowances. An example interaction: Lawyer: "We understand the importance of securing the right location for your restaurant. To support your expansion, we're offering the first three months' rent at 50% off and a flexible lease term of 1-3 years to suit your needs. Additionally, we provide a fit-out allowance to help customize the space. How do these incentives align with your business goals?" Tenant: "That sounds promising. The rent discount and fit-out allowance are particularly appealing as they ease initial costs. Let's discuss the lease terms in detail."

Adding some incentive ideas that work well during the slow leasing season, such as providing a rent-free period with standard market rent equal to the security deposit. Through this idea, the tenant can make long-term lease commitment, and the rent value of the property will not be reduced, creating a win-win situation for both.

I totally agree with this point. I have seen landlords waive parking costs, security and garbage collection fees for their tenants and these simple things often keep customers happy.

Incentives are a great option; it could be advantageous to provide these incentives of course up front and throughout the lease term. Example: When the typical leasing rate/slower seasons occur for tenants to offset the cost of increasing rents and the cost of running a business. Also, providing incentives for tenants that have been at a location for over 7 years.

To incentivize tenants during a slow leasing season, present a market analysis highlighting key benefits. For example, if leasing space to a supermarket, emphasize: 1) Demographics: Highlight the area's growing population and high consumer demand for grocery stores. 2) Competition: Show limited nearby supermarkets, indicating less competition. 3) Traffic: Provide data on high foot and vehicle traffic. 4) Incentives: Offer lease discounts, free initial rent months, or flexible lease terms. Example: "Leasing this space offers access to a growing community with limited grocery options. High traffic ensures visibility. Enjoy introductory lease discounts to boost interest."

I understand that real estate is considered an investment I believe that incorporating community will allow for more flexibility and recovery of possible vacancy/re-advertising/additional cost to bring on a new tenant loss of property performance by not only maintaining a healthy relationship with the tenants. When property owners are empathic and understand that the long-term goal is mutual for business performance any new development could not compete. Loyalty to a productive relationship and rental rates cannot be beat.

To attract tenants during a slow leasing season, utilize negotiation readiness by offering flexible lease terms, such as shorter lease durations or graduated rent payments. For instance, if leasing a space to a Footlocker franchise, you might propose a tiered rent structure: lower initial rent that increases over time as business picks up. Additionally, offer incentives like free rent for the first month or contributions towards store improvements. By being prepared to negotiate and tailor terms to the tenant's needs, you make your property more attractive and competitive in a challenging market.

Always be prepared to negotiate. Potential tenants often expect some level of bargaining, so incorporate this into your pricing strategy from the start. Set your listed prices with enough flexibility to offer concessions while maintaining profitability. By showing openness to negotiation, you demonstrate flexibility and a willingness to collaborate, which can be a compelling selling point.

Both the Owner and the prospective Tenant are business owners. Negotiation is expected to a degree. Owners should set a mid, and high level of expectations about negotiations. What is the minimum that you could take according to the market to sustain business? Also, what is my threshold tolerance to maintain profits with the ebbs and flow of the market?

Market is never slow, some industries are. In case you are not able to get a desired client due to market slowness, may be you should look for a client from a different industry that is booming. It is rare that all the sectors / industries will be slow at the same time. My advise to landlords having multiple units is that you will need to maintain a differentiated tenant mix to survive the market ups and downs.