Five Upgrades That Increase the Value of Your Commercial Property
If you plan on investing in your commercial real estate property, renting it to tenants, or selling it to a prospective buyer, here are some methods you can employ to boost the value.
Make it Eco-Friendly
In today’s marketplace, buyers are interested in the environmental impact of the buildings they are considering, regarding both efficiency of energy and water usage and environmental footprint. Analyze your opportunities to harness commercial technologies including solar power, energy efficient light bulbs, low flow water-saving plumbing appliances, increased insulation, and recycled building materials when making upgrades and renovations. These components can lower your expenses while diminishing environmental impact, and there may be tax incentives to invest in green technologies.
Convert it Back to a Blank Canvas
When listing an existing commercial building on the market, presenting a clean state to prospective buyers will make it easier for them to envision their own business occupying the property. First, rid the space of any sign of the pre-existing business, including equipment and furniture. Then, give every inch of the building a deep clean, including floors, walls, carpets, and windows. This approach will maximize the perceived square footage available to the potential buyer and their business.
Depending on the space’s initial purpose and your prospective buyer’s needs, you can repurpose it as additional office, conference, storage, or warehouse space.
Improve the Exterior
Investing in cleaning, prepping, and landscaping the exterior of your building will give you an advantage by increasing the curb appeal to buyers. Evaluate upgraded lighting, a fresh coat of paint, or a newly poured or rebuilt walkway. Make sure the lawns are cut, and dumpsters are hidden from street view.
Cleanliness of the grounds and building is the simplest and cheapest way to boost the implied value of the property. Upgraded windows and doors will reduce operational costs and utilities as well as give off an upgraded and streamlined aesthetic that will appeal to a buyer or renter.
Another element to consider upgrading is exterior signage. If a sign is difficult to read, partially blocked, or in need of repair, it can decrease property value. Research the materials, sizes, placement, and aesthetics for your new sign. Naming your property can increase character and desirability, so consider geographical surroundings and historical aspects when choosing a name.
Improve Structural Integrity
This method is primarily directed to sellers aiming to sell an entire property. Inspecting for signs of degradation and general wear and tear and hiring a contractor to do an assessment is a smart way to identify structural repairs that need addressing. Keep an eye on the frame of the building, the foundation, and the waterproof membrane or roofing for leaks.
Increase Security, Parking, and Rent
Ramping up security measures including alarms, gates, and shutters will raise the property’s appeal to tenants. Heightened security will also reduce your insurance premium. If you have a parking lot, examine if it needs resurfacing or repainting. If not, consider renting from neighbors to offer buyers or renters a strong selling point.
The primary interest of commercial real estate owners is income generation, and raising the rent is the easiest method to increase income. If you have recently upgraded the property, or expect high occupancy ranging from 90%-100%, consider raising the rent accordingly.