Here's how you can handle underperformance in Commercial Real Estate during performance evaluation.

While it is easy to attribute high vacancy rates to alleged general economic uncertainty in the office sector, it is an issue that can be managed. Use qualitative research to understand your market as a logical first step. Survey your current tenants to learn what they like and what they want out of their workspace, and then analyze the results to identify sore spots that may be dragging down your leasing efforts.

Handling underperformance in commercial real estate during evaluations requires a strategic approach. Analyze performance metrics, set clear goals, and provide constructive feedback. Offer training and support to improve skills, consider restructuring responsibilities, and monitor progress closely for continuous improvement.

Have you just acquired a poorly performing commercial property that is ready for a new life cycle and you’re looking to implement new strategic measures? Here’s my approach: First, I listen and familiarize myself with the current status. My initial experts are always the janitors, cleaning staff, and tenants. Next, I review the data for the region, city district, and block. Then, I consult with real estate experts and start from the beginning again. In my opinion, asking questions & listening are the most important initial tasks. Afterward, analyze the information & communicate with professionals, such as local & regional realtors, and let them do their job. Naturally, renovations & revitalization must follow to support leasing efforts.

Active Listening and Asking Questions is the Key to Success Here are three ways to value your commercial property tenants as experts in their business, the micro-location, and your property: 1. Engage in Regular Conversations: Regularly check in with tenants to understand their needs and plans. They may want to expand or renew their leases. 2. Leverage Their Networks: Your tenants may have business partners or suppliers who could be potential new tenants. Utilize these connections to fill vacancies. 3. Appreciate Existing Tenants: New tenants are always more expensive. Show appreciation for current tenants and address their needs to maintain a stable and satisfied tenant base. Keep this in mind and stay successful.

Sometimes, even the best advertising strategy can’t help when a shopping street is 50% vacant and nobody wants to rent next to empty stores. Great advertising and strategy’s change won’t change that. Consider our approach: temporarily filling these spaces at least for the cost of utilities to improve the appearance of the shopping center until regular paying tenants move in. Ideal candidates are those who can’t or don’t want to commit to retail space permanently just yet. We’ve had success with artists (galleries), political parties (campaign periods), NGOs, and social projects. This strategy changes the outward image of the center and attracts future tenants. If you have any questions, feel free to contact me.