How to Navigate a Space Dilemma with a Long-Time Tenant? Your Advice Needed!

[Aidan Cullinan]

My partners and I recently acquired a mixed-use property, and we’re facing a challenge with one of our commercial tenants. This tenant operates a resale business and is currently renting a single unit on the ground floor. However, the previous landlord permitted them to take over an additional 3,000 square feet on the second floor, which is now filled with inventory and unusable for other purposes.

While this tenant has been reliable and has a long-standing relationship with the property, their occupancy of this extra space is limiting our ability to maximize rental revenue. We’re eager to reconfigure that area into multiple units to enhance income potential.

What strategies can we implement to address this situation effectively? We want to maintain a good relationship with the tenant while also reclaiming the space for our business goals. Your insights would be greatly appreciated!