Office space in Cape Town, or any other city, is a significant investment – as long as occupancy rates are high.
A prolonged period of vacancy can cost property owners anything between tens of thousands and millions of Rand in lost revenue, depending on how long the premises are empty.
To avoid this unfortunate situation, office space owners used to rely on long-term leases, property listing and viewings in advance of the current lease expiring, and other traditional approaches.
Unfortunately, as times change and the economy continues its slow growth, vacancies are becoming more common. But that doesn’t mean that commercial properties can’t produce a healthy income.
Thinking outside the box (and the office) for regular rental income
As businesses downsize, outsource, and embrace telecommuting and remote working, the steady stream of office space tenants in some buildings may seem to be running dry.
For building owners, this may seem like negative news – but it doesn’t have to be. Your building’s location and facilities are still valuable – you just need to market them to the right tenants.
Recently, commercial buildings around the world have been embracing three alternative types of tenant: shared office spaces, pop-up retail and entertainment venues. We’ve blogged in the past about the potential of shared office spaces to revive buildings with lower occupancy rates.
Pop-up retail and entertainment are two new trends that can be added to the tenant mix with great success.
- Pop-up retail involves setting up a shop with minimal fittings for a brief period of time – anything from days to weeks.
- The surprise factor involved in a pop-up store is often enough to attract customers, along with social media marketing.
- Commercial spaces are also being converted into restaurants serving breakfast and lunch.
- Bars and other venues catering to office workers on their way home from work are also becoming popular in cities around the world.
Like shared office spaces, these alternative approaches allow commercial space to generate income without the need for a long-term, traditional tenant.
If you’d like to maximise income in your commercial building, contact us today. The Commercial Space team is on hand to assist you.