According to DailyFinance.com, the commercial real estate industry is predicted to expand greatly in 2011 after previously being hit hard by the economic recession. With the industry still in an early stage of recovery, commercial property owners are considering creative ways to attract and retain residents.
Implementing utility submetering in the place of triple-net leasing is one strategy that many commercial properties owners are utilizing to retain residents in 2011. While triple-net leases require that commercial tenants pay for common area repairs and split utility costs, submetering allows tenants to instead be responsible only for their own utility usage. Utility usage can vary drastically from unit to unit depending on how the property is being used. In a triple-net lease, a small retail shop using virtually no utilities may be paying for part of the high utility bill from a busy restaurant. Submetering the property takes this out of the equation, allowing residents to pay only for the utilities that they use and ultimately saving them money.
Another unique strategy for attracting tenants is to consider converting commercial properties into live/work units. Multifamily Executive explains that the ability to pay only one rent is very appealing for many residents, especially those who can arrange their business so that it utilizes one floor of the property while living on another. Converting units in commercial properties into livable lofts is another way to create a live/work space that is convenient for residents looking to pay only one rent.