Commercial Property Owners: Now Is the Time to Start Planning for 2027

October may seem early to start thinking about next year, but for commercial property owners, the final quarter of the year is an ideal time to review leases, expenses and upcoming property needs.

Waiting until January can mean missing opportunities to address issues before they affect income.

Review Upcoming Lease Expirations

Start by looking at every lease scheduled to expire in 2027.

How much notice is required? Does the tenant have a renewal option? Are there scheduled rent increases? Does the lease automatically renew?

Knowing these dates ahead of time gives both the landlord and tenant time to discuss plans.

If a tenant does not intend to renew, starting the leasing process early can help reduce potential vacancy.

Check Your Current Rental Rates

Commercial rents can remain unchanged for years if leases and renewals are not regularly reviewed.

Compare existing rents with current market conditions and consider whether upcoming renewals should include adjustments.

The goal is not simply to raise rent. It is to make sure the property remains competitive while producing appropriate income.

Review Operating Expenses

Insurance, utilities, landscaping, snow removal, maintenance, taxes and other property expenses can change significantly from year to year.

Owners should understand how those increases affect the property’s overall performance and which expenses may be recoverable from tenants under their leases.

Walk the Property

Fall is also a good time to inspect the building and grounds.

Look for deferred maintenance, roof or drainage concerns, pavement issues, exterior lighting problems, HVAC needs and anything else that should be addressed before winter.

Small problems are usually easier and less expensive to address before they become emergencies.

Start 2027 With a Plan

Commercial real estate performs best when owners are proactive instead of reactive.

A simple year-end review can help identify upcoming vacancies, leasing opportunities, needed improvements and areas where operating costs can be better managed.

If you own commercial or investment property in Connecticut and would like to discuss leasing, selling, purchasing or the current value of your property, give me a call.

Tom Cavaliere
Coldwell Banker Realty / Commercial
203-907-7800
youragenttom.com