Clever Ways to Increase The Value of Your Commercial Property
You’ve decided to take your chances at investing in the reals estate industry with the hopes of gaining the many benefits it has to offer. Yes, you are in the right place. Commercial properties have potential to increase in value over time. As the property owner or manager, you can take this chance to be strategic and think long-term. Remember, you can gain greater profitability by increasing income and reducing the operating expenses of your commercial property.
That said, the following are some easy ways to increase the value of your commercial property.
Did you know that the value of your property can be significantly affected by its condition? Therefore, it’s crucial to maintain your buildings and keep them in a state as if you are going to sell them the next day.
Attract the best tenants and fortify your competitive edge in the market by frequently managing repairs and maintenances. Remember that tenants are willing to pay extra since the condition of your commercial property is a symbol of their brand and they want it to attract clients.
If there are areas in your building that have been untouched for years, start saving money to pay for replacements. Keep in mind that the value of your property will decrease as a result of wear and tear.
Get the Help of a Professional
Making decisions to improve the value of your property can be overwhelming and confusing. That is why you need to work with a commercial property manager. A property manager will give you new ideas on how to increase the income from your property, reduce the operating costs, and improve its value.
Raising rent is a big step and should be impelemented after careful deliberation. Raising rent can help increase the cash flow and improve the value of your property in the process. However, if done thoughtlessly, you run the risk of having vacant spaces as tenants will find cheaper buildings somewhere else. Therefore, before raising the rent, evaluate all the possible risks and repercussions that will arise.
Consider raising the rent only if your property is well located, has high-end tenants, the nearby rents are higher, and you have potential tenants on your waiting list. Remember, the end goal is to charge a higher rent without making the tenants vacate or lowering your chances of attracting new tenants.
Increase Energy Efficiency
Everyone knows that making energy enhancements can reduce electricity bills. However, that is not all. There are many ways your building can benefit from energy improvements. And when it comes to commercial properties, your approach to energy management can hugely affect the top and bottom lines of monetary performance.
An excellent way to improve energy efficiency in your building is by introducing energy-efficient bulbs. This can save energy and lower maintenance costs at the same time. In addition, LED lights can make your property more attractive to tenants.
Increase the Space to Rent
There is a big difference when it comes to the total area of your property and the area you can rent out. This difference can be quite a lot due to poor building design, or inadequate utilization of the rentable space. This will eventually result in the area not being used to its full potential. Therefore, go back to your floorplan and check if there is any space that can be rented out without too much disruption.
There are many other ways you can add value to your commercial property. Most of the means will need you to update the inner and exterior parts of the buildings and change the lease terms. You can also improve your property’s energy efficiency, increase rents, maintain it, and most essentially, get the help of a professional. Whichever means you pick, it will guarantee an increase in your property’s value.