In this property market where things are so tough for many investors, a tenant retention program is essential to support the cash flow and rental income for the property.
There is really only one rule that should apply to the design and implementation of the program; keep your good tenants happy and in occupancy.
In saying that, some tenants in a commercial property may be difficult and have created problems over the term of their lease; these tenants do not rank highly in a tenant retention program.
If anything in the retention plan, you should be looking to find replacement tenants to take the space of difficult tenants.
Good Tenants Matter So let's look at the tenants that you do want to keep in occupancy.
They are the ones that should be nurtured into longer term leases and relationships with the property and tenant mix.
Here are some parts of the tenant retention program that may work for you as the property manager or leasing manager:

1. The plan should be forward looking and planning.
   As part of that, the lease expiry dates, option dates, and rent review dates over the next 24 months should be tracked and implemented early where appropriate.
   There is nothing wrong with negotiating a lease or rent 12 months out with a good tenant if it gives surety of occupancy for the coming 2 or more years.
   
2. Keep in contact with all your tenants monthly so you know when they are under pressure of premises expansion or contraction.
   It is better for you to find that out directly and work on it, than let the tenant find another building to move to and give you a vacancy or a lease default that you do not expect.
   
3. When tenants are under financial pressure from the local or global economy, it is better to work with them than lose them.
   It may be that the product or service that they offer is still a viable offering to the end user market.
   They just need to adjust the marketing approach that they have or reposition their costs.
   A smaller tenancy in the same property may be an option.
   You can also help them with assignment or sublet strategies.
   
4. If a vacancy in the property exists, it is better to find a short term occupant for 12 months than let the vacant space impact the image and tenant mix for the property.
   
5. If you have tenants that are of little benefit to the property and have been significant trouble to manage over the term of their lease, then the planning process should be looking at nearby businesses that could move to your property and replace the difficult tenant.
   
6. Set clear benchmarks in rents, incentives, and terms of leases so you can negotiate each lease situation within the benchmarks with clarity and direction.
   

A good tenant retention plan will be a stabilising feature of the property and lease management process.
All good size properties would incorporate at plan like this into their yearly lease modelling.