Best practices for CRE owners to evaluate and select tenants

[Charles D. Smith]

When it comes to evaluating and selecting the right tenants for your commercial real estate property there are some important aspects that I like to consider and I thought I would share.

• It is essential to clearly understand how a prospective tenant plans to use the space. You should ask yourself if their use will complement the property and your existing tenants.
• You also want to select a tenant who has a well-established business and background experience. This will benefit you in the long run knowing they are built on a good foundation.
• Understand the tenant’s financial strength to ensure they are sufficiently capitalized and capable of fulfilling their lease obligations. This is the obvious one, but it shouldn’t go without consideration when choosing the best tenants.