What to do when you have multiple people interested in leasing?

[Jason J.]

Hello,

I am looking for advice on a commercial property. I listed it for lease a few days ago and have a huge interest in the space. I can start showing the space in a few days. I will likely have multiple people who want to lease it. This is a commercial space, not residential.

We plan on getting information on each business and narrowing the list down to those who seem the most reputable. 

How do we go about deciding who to lease the space to? 

1. Is it common to have all of the potential tenants submit offers to you? Should we look at what they are willing to offer above listing price and how long they are willing to sign?

2. Or do you go with the first person who shows up who is willing to sign the lease?

Any other advice is greatly appreciated. If you were in this situation, would love to hear your story and how you handled it.

Right now, the space is in high demand due to no inventory on the market in that particular type and size of property.

[Caroline Gerardo]

What is the proposed use? What traffic do they bring? What time of day operating and does that work with other tenants? What is your parking situation? What will the city/county allow ? How stable are they? Will they stay a long time? Do they want tenant improvements to be paid by you or what?   So narrow down if they are a good marriage match first, toss aside the short term girlfriends. Then let's look at the use type for example: restaurant costs the most to install kitchen, get permits and most likely to go under. What is the owner operator FICO score? Now you have two candidates. Go look where their business is today and who will be your highest paying wife?