How to Reduce Vacancy Rates in Commercial Properties

Details: October 22, 2025

High vacancy rates can throw a wrench in maximizing the returns on your commercial property investment. That’s why it’s crucial to prioritize tenant retention through consistent property maintenance and marketing, so you can attract candidates and keep your current renters.

Understanding the Impact of CRE Vacancies

Vacancies can reflect poorly on your reputation. Potential tenants may question frequent turnovers or choose a different location with a more consistent rental history. Long-term vacancies may also affect your property value and force you to alter your prices and lease terms to accommodate a smaller pool of renters. Economic changes, local competition and consumer habits all influence tenants’ decisions when selecting where to establish their business. Evaluating market conditions regularly can help you understand the challenges they face so you can provide competitive solutions and attract quality candidates.

Tips for Managing Property Vacancies

Offer Competitive Lease Terms

While it may be tempting to lock in long-term tenants for multiple years, recent market shifts and hybrid working environments have made one- and two-year leases more attractive. You also don’t have to offer the lowest rates in town to attract and keep commercial renters. Flexible terms may include discounted rent, improvement allowances and shorter lease durations. Those features allow candidates to customize their agreement, which may influence their decision when choosing your commercial property. Each business is different, and offering diverse terms can help meet your renters’ needs.

Prioritize Tenant-Landlord Relationships

Another crucial component in minimizing commercial real estate vacancies is to maintain a positive relationship with your current tenants. Consistent communication and responsiveness build trust and can incentivize renters to renew their lease agreements. Understanding the obstacles that affect your tenant’s daily operations allows you to deliver customized solutions, too.

Provide opportunities for feedback, whether that’s via email, survey or online portal where renters can submit comments and requests. That insight allows you to identify pain points and address them promptly. If you face high turnover rates, crowdsourcing information may also help you identify areas of improvement when it comes to commercial property management.

Invest in Property Maintenance and Upgrades

Your property’s interior and exterior can affect satisfaction rates. That’s why consistent maintenance is a key component in your efforts to reduce vacancies.

Here are some tips to consider:

Upgrade utilities and building systems: Utility issues disrupt your tenants’ operations and comfort. Upgrading HVAC, lighting and environmental controls not only enhances their satisfaction, but may increase the likelihood of them renewing their lease, too.
Enhance interior functionality: A clean, well-designed space is important for tenants who need to attract clients and customers. Consider updating finishes, changing lighting fixtures and optimizing layouts to enhance functionality.
Prioritize curb appeal: The exterior of your building sets the tone for what to expect inside. The façade, landscaping and parking lot influence how visitors perceive the quality of your investment. Outdoor amenities like walkways and green spaces can enhance tenant satisfaction.

Establish a Property Marketing Strategy

You can’t effectively fill commercial property vacancies if you don’t know how to reach your target audience. That’s where marketing comes into play. Optimizing property listings and promoting them on social media allows you to provide insight into features and amenities and attract potential tenants. That increases your online presence and visibility, so you can get your properties in front of a larger pool of prospects.

Those efforts also shape your professional image, which can go a long way toward boosting brand perception. Including your logo and high-quality visuals can make it easier to stand out in a crowded market. Incorporating testimonials and case studies is another effective strategy to attract tenants and show them how you’ve helped others succeed.

Work With Professionals

Hands-on services: A commercial property management team can deliver prompt maintenance and repair services, boosting tenant satisfaction. Property managers also monitor communication to promote efficient conflict resolution.

Faster turnaround: If you have vacant units, a third-party team can assess and prepare those spaces for new renters. That takes the responsibility off your shoulders so you can focus on vetting potential candidates.

Marketing expertise: Part of an effective marketing strategy includes collaborating with brokers to boost outreach efforts. A good property management company should have various connections to help you find the right tenants.

Leasing strategies: Property management teams use market data to create leases that provide competitive rates and custom terms. Those incentives can help you find and keep tenants, increase renewals and reduce the time between occupancy.

Expert Commercial Real Estate Management in Columbus, Ohio

Whether you’re new to the CRE game or have experience, DRK and Company can help you optimize your portfolio. Columbus, Ohio, is bursting with investment opportunities thanks to its industry diversity and economic resilience. Our expert team will work with you to determine your specific goals and find the right property to meet your expectations. Contact us to schedule a consultation.