Leasing a Vacant Industrial Property in San Mateo: What It Really Takes

In October 2025, an attorney I’d worked with referred me to Lynette and Gary, who owned a two-unit industrial property in San Mateo. The units had been empty for over a year, and the family had spent months going back and forth on whether to sell the property or lease it. Once they decided to lease, I was brought in to get it done — and to manage it afterward.

Should you sell or lease a vacant industrial property?

There’s no universal answer, but the tradeoff is clear: a leased building produces income and is more attractive to investor-buyers down the road, while selling vacant suits an owner who wants out of management entirely. These owners chose to lease — they wanted the property earning again, with the asset still in the family. But a building that’s sat empty for a year doesn’t lease itself.

Why is it hard to insure an older commercial building?

Older buildings with aging electrical, plumbing, or roofs are often pushed out of the standard “admitted” insurance market and into higher-priced “non-admitted” (surplus lines) coverage, because carriers see more fire and claims risk. In plain terms: an admitted carrier is licensed and regulated by the state and backed by California’s guaranty fund; a non-admitted (surplus lines) carrier takes on risks the standard market won’t, usually at a higher price.

The owners here were insured through a non-admitted carrier and wanted to move to an admitted one. The building’s age and some of its older systems made that difficult. I connected them with insurance professionals and gathered estimates, but renewing with their existing non-admitted carrier remained the most reasonably priced option, and that’s where they landed for now. (General information — a licensed broker prices your specific building.)

What upgrades help an older building get leased — and insured?

The same upgrades help with both. Insurers most want to see modern electrical and a sound roof on an older building, and those are exactly what a tenant signing a multi-year lease wants too. Here’s what I did, and why each piece mattered on both sides:

I also built out a small office area in the back unit. Asphalt and fence repairs are quoted and on deck as a phase-two project.

How long did it take to lease two units that sat empty for a year?

Both units signed five-year leases within months of my taking over — the front unit first, within about two months. The front unit leased fastest: it has the better street frontage and signage, more character, a built-out lobby and office, and nicer parking. The back unit was closer to shell condition and needed that small office build, so it followed. Because the property is zoned for auto use, both tenants are auto-repair operators — and side by side, two shops in the same trade reinforce each other, with shared customer traffic and one consistent use for the parcel.

Can one agent represent both the owner and the tenant on a lease?

Yes. When a tenant comes to the table without their own agent, California allows the listing agent to represent both sides as a disclosed dual agent — with written disclosure and informed consent from everyone involved. Both tenants here were unrepresented, so I acted as a disclosed dual agent on both leases, which kept the deals moving.

The part most owners get wrong

It’s tempting to look at a tired, vacant industrial building and see only two options: sell it, or keep losing money every month it sits. The owners who come out ahead fix the boring stuff first — panels, roof, doors, meters. Get those right, and the lease and the insurance tend to follow. A property that “nobody wanted” for a year became two five-year leases once the systems behind the walls were sound.

If you own an industrial or commercial property on the Peninsula that’s sitting vacant or eating into your time, that’s exactly what I do — from lease-up through day-to-day management. Reach out and I’ll put together a plan for your property.