Finding the Right Tenant for your Commercial Property

A good tenant can make all the difference for your commercial property. Likewise, the wrong tenant can turn your investment property into your worst nightmare and can impact your profit potential. It takes time and effort to find the right tenant, but the rewards are worth the effort. Here are a few things to consider when looking for the right tenant.

Identify Your Property’s Best Use

Identifying the best use for your property helps you set the rents correctly. You are looking for the best profit potential for the property so that you can advertise it correctly. Look at the following to help determine the best use:

• Property type and current zoning
• Potential for re-zoning
• Property size and accessibility
• Any build-out in place
• Potential customers or employees
• Types of businesses in the surrounding neighborhood

If you are inexperienced with commercial property management in Chicago, it is helpful to hire an accredited property manager to help you. The best use of your property will determine the type of tenant your look for and the lease price for the building. The services of a Chicago commercial real estate management company can be invaluable even for experienced property owners.

Educate Yourself on Surrounding Businesses

Learning more about the neighborhood surrounding your property will help you determine who your best tenant will be. Ask yourself these questions about the surrounding businesses:

• Is the neighborhood changing? If so, is it for the better or worse?
• What types of business are nearby?
• Are there other properties available nearby? If so, how is yours better?
• Is there a high demand for commercial property in the area?
• Are there potential customers or employees close by?
• What does your tenant need to be successful in the space?

Add Value to Your Property Where Possible 

Enhancing your property’s appeal doesn’t have to mean major renovations. Small, targeted upgrades can significantly increase tenant interest and perceived value. Installing energy-efficient lighting, modernizing restrooms, or updating finishes can give your space a more contemporary look. 

Amenities like shared conference rooms, secure package drop-off areas, or updated HVAC systems can also differentiate your property in a competitive market. According to NAIOP, commercial buildings with rooftop solar installations can command up to 7% higher rent premiums in North America. Whether you’re targeting office tenants, retailers, or industrial users, even modest value-add improvements can boost your ROI and attract higher-quality tenants. 

Pay Attention to Detail and Condition

Before marketing your space, take a hard look at its current condition—first impressions matter more than many landlords realize. A clean, well-lit, and well-maintained property signals professionalism and makes prospective tenants feel confident about doing business with you. 

Simple steps like repainting scuffed walls, repairing minor damages, or enhancing landscaping can go a long way. In fact, LoopNet found that properties in good condition leased 19% faster and sold 9% faster than comparable listings with visible maintenance issues. These small investments not only attract more interest but can also justify stronger lease terms and higher rental rates. 

Make Sure You Have an Online Presence

An online presence is no longer optional—it’s the foundation of your marketing strategy. Most tenants now begin their search digitally, whether through listing platforms like LoopNet and CREXi, or by Googling available commercial space in their area. In 2023, LoopNet listings alone were involved in 51% of commercial transactions in the U.S., representing more than $100 billion in activity. 

Your listing should feature high-quality images, a clear floor plan, and a professional, accurate description. If you have multiple properties, consider maintaining a dedicated property website or landing page. These elements improve credibility and help capture serious leads. 

Find the Right Channels and Market

Knowing your audience is only half the battle—you also need to meet them where they are. More than 80% of tenants now conduct independent online research during their search for commercial space, underscoring the need for smart channel selection. 

Digital platforms like LoopNet, CREXi, and local broker networks are essential tools, but depending on your tenant type, other channels may be just as effective. For example, restaurant tenants may browse industry-specific forums or Facebook groups, while professional services might rely on LinkedIn or referrals. A targeted approach helps reduce time on market and attracts the tenants best suited to your space. 

Add Quality Signage to the Physical Location

While digital listings are essential, on-site signage still plays a key role in attracting prospective tenants—particularly in high-foot-traffic or drive-by locations. A well-designed sign signals that the space is available, professionally managed, and worth inquiring about. Effective signage should include basic information such as square footage, zoning type, and clear contact details. 

Depending on local ordinances, options like window decals, A-frame signs, banners, or monument signs can all help capture interest from passersby. For retail and service-based spaces, visibility from the street can be just as important as online exposure, making physical signage a valuable—and often underutilized—tool in your leasing strategy. 

List Your Commercial Property Correctly

Your property listing should be designed to attract the most desirable tenants for the space. Spend some time designing an ad with the right wording to present your property in its best light. Be honest about its potential and who would be an ideal tenant.

Determine where to find your ideal tenant and target them specifically. It is usually a waste of time and money to target your advertising efforts to a generic audience. If you’ve done your homework, you know who your ideal tenant is and where to find him. Pay a little more, if necessary, to list your Chicago commercial real estate properly. If you need help, consult with a Chicago commercial real estate management company.

Provide an Offer That’s Hard to Refuse

In competitive or oversupplied markets, offering creative incentives can help your property stand out. Options might include one or two months of free rent, a move-in allowance, flexible lease terms, or a tenant improvement allowance to help customize the space. These extras can tip the scales for a tenant choosing between similar properties. 

Just as important as the offer itself is how clearly it’s presented—transparency builds trust. Be upfront about what’s included and outline any additional costs or responsibilities. A thoughtful, well-structured offer signals to prospective tenants that you’re a flexible and professional landlord who values long-term relationships. 

Identify Areas Where You Can Be Flexible

Commercial tenants today often have changing priorities—whether it’s scaling their operations, testing new markets, or adjusting to hybrid work models. Offering flexibility in lease structure can make your property more appealing. Consider providing options like shorter initial lease terms, phased move-ins, or allowances for tenant-specific build-outs. 

Flexibility doesn’t mean compromising your bottom line—it means being responsive to legitimate tenant needs while structuring agreements that still protect your investment. When tenants feel they have room to grow or adapt, they’re more likely to choose your space and stay for the long haul.

Research Your Potential Tenant

Once you’ve located a potential tenant, do a background check. Many landlords skip this step and have horror stories to tell about it. You are entering into a long-term business relationship, make sure you are choosing the right partner. Here is a minimum of research that you should do:

• Background Check: Look for criminal history, prior evictions, repossessions, civil judgements, and bankruptcies
• Verify income and do a credit check
• Check with previous landlords, is the tenant stable and do they pay rent on time?
• Is the tenant a good fit for the property? Do your instincts tell you the tenant will be successful?

Utilize a Commercial Real Estate Manager

It is always wise to consult an expert, especially when your money is at stake. Hiring a commercial real estate manager helps you get the most out of your property while removing the day-to-day tasks from your plate. At Millennium Properties, we draw up a customized management plan that is designed to help you maximize your profit and cut out the hassles. We have experience with all types of property management. Chicago is a competitive market, let us help you find the right tenants for your commercial real estate.