For owners of commercial buildings and rental property operators, the success or failure of tenant attraction (tenant leasing) directly affects revenue. To achieve efficient leasing, advance preparation matters more than the marketing methods themselves.
What is required for tenant attraction?
Tenant attraction does not end with simply “bringing in leads.” Reliably completing the following three steps before leasing begins is a prerequisite for long-term occupancy and low-risk property management.
Understand the current situation
Research and analysis of the building age, facility condition, leasing status of competing buildings, and surrounding environment are essential. By attracting tenants that match the property’s location and condition, long-term occupancy becomes more likely. Reduce risk through regular assessments of the current situation.
Understand the types of target tenants
There are three tenant formats: “retail,” “office,” and “warehouse.” Retail can be further divided into independently operated stores, franchises, and chain stores (local/national). A precise understanding of these categories makes planned leasing possible.
Set terms and appropriate rent
If rent is not set appropriately, it can lead to tenant turnover or disputes. It is important to review market rents by business type in competing buildings, organize the property’s selling points, and then set the terms accordingly. If the rent is above the market level, proposing lower deposits or key money can also be effective.
What methods are available for tenant attraction?
Register with REINS
REINS is a real estate network system operated by a real estate distribution organization designated by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (Real Estate Information Network System). Once registered as a member, users can browse and list real estate properties across Japan. By asking a real estate company to support the process, you can make the property known to many brokers, which increases the likelihood of attracting tenants.
Use recruitment flyers
Even today, although online listing has become the mainstream approach, flyer-based promotion remains effective. By posting or newspaper-inserting flyers designed for readability in both layout and copy, you can raise awareness within the local area.
List on real estate websites
REINS requires membership registration, but real estate websites can be accessed by many people without membership registration. Choosing websites that handle a large number of tenant properties improves leasing efficiency.
Related reading
Frequently asked questions (FAQ)
Q. What is the difference between tenant leasing and tenant attraction?
They mean the same thing. The English-derived term “tenant leasing” has become established as an industry term.
Q. How should I determine appropriate rent?
The most reliable approach is to research rent levels by business type in competing buildings and nearby areas, and to consult a real estate company as needed.
Q. What causes tenants to leave more easily?
The main causes are high rent, aging facilities, and insufficient differentiation from competing properties. Regular property reviews and vacancy countermeasures are therefore important.
Q. Should I prioritize REINS or portal websites for listings?
REINS is strong for sharing information with real estate companies, while portal websites are effective for reaching end users directly. Using both is the ideal approach.
