Planning for Success: What Every Commercial Property Owner Should Think About in 2026
1. Lease Expirations and Renewals
Owners with leases approaching expiration should begin their research now. This involves understanding current market rents, analyzing what concessions are being offered by competing landlords, and establishing the typical time required to lease a vacant space. This foresight is essential for minimizing vacancy periods and creating a robust strategy for upcoming renewals or new tenant acquisition.
2. Owner-User Planning
For businesses that occupy their own commercial properties, early planning for expansion is crucial. If growth is anticipated this year, it is vital to start the process immediately. Key steps include defining specific space needs, understanding the time frame required to complete a transaction, and staying informed on current market prices. This preparation ensures you are well-positioned to secure the right space for your business’s future.
3. Improving Cash Flow
A healthy cash flow is the backbone of a valuable commercial asset. Owners should actively seek ways to improve their bottom line, which can include renegotiating rents, implementing measures to reduce operating costs, and enhancing the overall efficiency of the property. A focus on these areas directly contributes to a healthier net operating income (NOI).
4. Exit Strategies
Even if a sale is not imminent, every commercial property owner should have a clear exit strategy. This long-term perspective involves identifying actions that can be taken now to maximize the property’s value for a future transaction. This may include increasing the net operating income, making strategic capital improvements, and continuously educating oneself on market valuations and tax implications. Taking these steps early ensures the property is at its full potential when the time comes to sell.
If you’d like to discuss your commercial real estate goals in 2026, reach out at the contact information below
Emma McDaniel Lunning, CCIM
864-576-4660
emma@mcdanielandco.com
