4 Tips for Managing Commercial Real Estate Properties


Owning commercial real estate has immense potential as a passive income vehicle. Demand for commercial spaces remains high despite the effects of the past three years, with businesses looking for prime locations where they could establish their presence. For commercial property investors, opportunities are plentiful in today’s real estate market.

It’s one thing to search for and purchase a commercial building, it’s a whole different ball game to maintain profitability. That is why as an investor, proper management ensures that the property is filled with high-value tenants and produces stable cash flow.

Here’s a guide to help you manage a commercial property and reap the best benefits from it:

1. Come up with an effective maintenance plan

The profitability of your commercial property depends largely on how well you keep your tenants happy. This involves making sure your property is well-maintained. Aesthetic and structural damages render the building less than ideal for businesses that put a premium on a property in the best condition.

To help you with this, come up with a maintenance plan that includes monthly structural assessments and regular improvements to essential utilities, such as electricity and water. Your maintenance plan should also include keeping the landscaping in good shape and clearing the way for foot traffic.

2. Improve tenant communications

It’s not just a well-maintained structure that fosters profitability. The way your property management team handles tenant issues and concerns can help improve rapport and keep the turnover rate low. Without an effective tenant communications plan, minor problems could snowball into major issues that are difficult to recover from.

Before implementing new policies, make sure to organize town hall meetings with representatives from each establishment. Plans for major improvements that could affect business operations and rent increases should be discussed thoroughly before implementation. Otherwise, you may end up causing tenants to leave and set up shop elsewhere.

3. Make on-site enhancements

Businesses will stay in your commercial property when they know that it’s getting healthy foot traffic. Making it easy for customers to move around and shop helps with retention. By enhancing on-site experiences, you can help your tenants get more customers, and this can lead to better tenant retention because they can afford to keep their space.

Consider larger parking spaces, directory signs allowing you to easily change tenant details, and escalators or elevators. You can also improve customer experience by investing in better security, a fire suppression system, ample lighting, and an indoor green space.

Free Photo of Women's Clothing Stock Photo

4. Promote your spaces

A higher occupancy rate is crucial in sustaining your property, so consider running a marketing campaign that reaches out to brands that might be interested in renting a space. Work with a listing agent or have your marketing team network with local business groups.

You can also seek out investors outside your area who want to build a new branch. It takes time to find the right businesses, but since relying on existing tenants alone won’t enhance your cash flow, you might as well put in the effort.


As the owner of a commercial property with lots of space to rent out, it matters a lot to know how you can maximize it for generating passive income. With these tips in mind, you could earn enough to buy another property out of town!