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How to Attract Tenants to Your Retail Property (2026 Guide)

  • Writer: gloryanng8
    gloryanng8
  • Nov 29, 2025
  • 4 min read

Finding the right tenants for a retail space is one of the biggest challenges property owners face—especially in highly competitive markets like Los Angeles and the South Bay. Retail has changed drastically over the past few years, with consumer expectations, tenant preferences, and leasing standards shifting faster than ever.


The good news? Retail is stronger than most people think, particularly service-based and experience-driven categories. With the right improvements, marketing, and leasing strategies, landlords can fill vacancies faster and attract long-term, reliable tenants.

Empty strip mall with stone and brick facade under a clear blue sky. No text visible. Quiet and spacious parking area in the foreground.

This comprehensive guide explains how to make your retail property stand out, what modern tenants look for, and how to position your space for maximum demand in 2026 and beyond.

For broader CRE fundamentals, you can also review:

Empty shopping plaza with brick and stone facades, black awnings, and reflective windows. Blue sky and clouds in the background.

What Retail Tenants Want in 2026

Today’s retail tenants are not just looking for a location—they’re looking for visibility, convenience, and synergy. The most successful tenants understand where their customers are, how they behave, and which environments keep foot traffic consistent.

Tenants in 2026 prioritize:

  • High-visibility signage

  • Ample, easy-access parking

  • Strong co-tenancy

  • Updated, modern finishes

  • Safe, clean environments

  • Affordable improvement allowances

  • Flexible floorplans

  • Nearby residential or office density


Step 1 — Improve Signage & Visibility

Visibility remains the #1 factor for retail leasing demand.

Tenants want customers to see them immediately without searching or guessing where the entrance is.

Visibility Upgrades That Make a Big Difference

  • Install high-quality, well-lit monument signs

  • Improve façade lighting

  • Repaint or reface storefront exteriors

  • Upgrade windows to modern, clear glass

  • Remove visual clutter that blocks the storefront

Even small enhancements can increase walk-ins and tenant interest significantly.

Row of empty storefronts with stone and brick facade, brown awnings, and reflective glass doors. A small tree and handicap signs are visible.

Step 2 — Strengthen Co-Tenancy & Tenant Mix

Good tenants attract more good tenants. This is why retail centers with strong co-tenancy outperform isolated spaces.

Winning Tenant Mix Examples

  • Fitness + café + beauty

  • Medical + pharmacy + retail wellness

  • Hair salon + nail spa + skin clinic

  • Restaurant + dessert shop + service retail

Mixed-use synergy also plays a key role:👉 Why Mixed-Use Properties Are the Future of Commercial Real Estate

If your property has vacant spaces, think strategically about which tenants will complement each other.

Empty retail building with stone facade under blue sky and clouds. Large glass windows, paved walkway, and sparse landscaping in front.

Step 3 — Increase Foot Traffic Appeal

Tenants want properties with walkability and consistent customer flow. Improving foot traffic makes your property more attractive, especially for restaurants and retail.

Foot Traffic Enhancers

  • Create outdoor seating

  • Add landscaping or shade structures

  • Improve lighting for nighttime safety

  • Enhance pathways and signage

  • Make the space more Instagram-friendly

Small aesthetic upgrades can dramatically elevate the environment.


Step 4 — Offer Flexible & Fair Lease Terms

Retail tenants care about stability. Flexible lease terms make vacancies easier to fill.

Examples of Smart Retail-Friendly Leasing Options

  • 3–5 year terms with renewal options

  • Competitive annual escalations

  • Shared maintenance responsibilities

  • Percentage rent clauses (for high-performing tenants)

  • Tenant improvement (TI) incentives

Learn more about smart leasing structure here:👉 Maximizing Commercial Space Efficiency – Tips for Smart Leasing Decisions


Step 5 — Upgrade the Space Before Marketing It

Retail tenants today expect turnkey or near-turnkey spaces. Empty concrete shells are harder to lease unless priced well and located in a prime area.

Most Valuable Retail Upgrades in 2026

  • Fresh paint and modern color palettes

  • New flooring

  • LED lighting

  • Updated restroom areas

  • Modern HVAC systems

  • ADA-compliant entries

  • Good ventilation for food or fitness tenants

These upgrades improve the tenant experience and reduce turnover.


Step 6 — Use Professional Marketing & Listing Strategies

Retail leasing is competitive. Your listing needs to stand out.

High-Converting Listing Components

  • Professional photos

  • Detailed floorplan

  • Accurate square footage

  • Traffic count information

  • Parking ratio details

  • Zoning and permitted uses

Listings with professional presentation generate significantly more inquiries.

RPM's recommended approach aligns with:👉 Why Finding the Right Commercial Property Feels So Overwhelming—and What You Can Do About It


Step 7 — Consider Offering Tenant Improvement (TI) Allowances

TI allowances are a powerful tool to attract higher-quality tenants.

A small upfront investment often results in:

  • Longer lease terms

  • Higher rental rates

  • More reliable tenants

  • Increased property value


Step 8 — Maintain the Property Professionally

Tenants are more likely to lease—and stay—if the property is well cared for.

Property Management Benefits

  • Faster repair response times

  • Cleaner and safer environments

  • Lower tenant turnover

  • Higher NOI

Poor management, on the other hand, can derail investment:👉 The Hidden Cost of Choosing the Wrong Commercial Space


Step 9 — Leverage Local Market Knowledge

Local expertise is essential for:

  • Identifying emerging neighborhoods

  • Matching tenant categories

  • Understanding zoning nuances

  • Pricing the space competitively

  • Avoiding costly pitfalls


Step 10 — Avoid Retail Leasing Mistakes

The wrong decisions can cost landlords significantly.

Common errors include:

  • Overpricing the space

  • Ignoring signage requirements

  • Failing to adjust space layout

  • Not screening tenant financials

  • Neglecting maintenance

  • Choosing the wrong tenant category for the area

See:👉 Common Mistakes Businesses Make When Choosing Commercial Space👉 The Costly Pitfalls in Choosing the Wrong Commercial Space


FAQs – How to Attract Tenants to Your Retail Property

1. What is the most important factor for attracting retail tenants?

Visibility—high signage exposure drives tenant demand.

2. What types of tenants are expanding in 2026?

Fitness, medical, beauty, dining, pet care, and service-based retail.

3. Do updated interiors help attract better tenants?

Yes. Modernized spaces lease faster and command higher rates.

4. Should landlords offer tenant improvement allowances?

TI allowances often attract higher-quality, long-term tenants.

5. How important is property management?

Very. Well-managed retail centers outperform poorly maintained ones.

6. Can I lease a retail space without onsite parking?

Yes, but the tenant pool will be more limited.

7. How long does it take to lease a retail space?

Location, pricing, tenant mix, and upgrades greatly influence timing.

8. What upgrades have the biggest impact?

Lighting, signage, ADA compliance, paint, and flooring.

9. How should I price my retail space?

Compare competing properties and current tenant demand.

10. Should I work with a retail leasing agent?

Yes—professional marketing and tenant connections accelerate leasing success.

 
 
 

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