3 Ways to Increase the Value of Your Commercial Property
If you have a commercial property in your real estate portfolio, protecting its value is vital. Whether you use it for your business activities or rent it out, you must ensure it remains a practical and attractive space. A commercial building with signs of neglect or improper maintenance will lose its appeal quickly.
Here are three ways to increase the value of your commercial property.
1. Invest in Improvements Regularly
The quickest way to make your commercial property more valuable on the market is to invest in improvements and renovations. As time goes by, buildings suffer damage due to environmental conditions, ground movements, pests, or material or structural defects. Wind, precipitation, storms, and even unnoticeable earthquakes can cause damage to the foundation, doors, windows, walls, or roof.
Inspect your property regularly to detect problems and determine what improvements or renovations may be necessary. If you notice any damage, do not postpone repair. Bad weather can make any problem worse. For example, a leaky roof can cause water damage inside the building, creating the conditions for mold. Thankfully, commercial roof repair services can help you fix this type of problem quickly, before any costly complications.
Regular improvements and renovations will keep your commercial property in perfect condition. With professional advice, you can quickly implement the right solutions for your building and avoid additional problems. As a result, the value of your property will increase in time.
2. Reduce Maintenance Costs
The average size of a commercial building is well over 10,000 square feet, so the operating costs can be very high. Cutting down expenses will let you keep more money in your pocket, potentially bring you more revenue, and significantly increase the value of your property.
How to lower operating costs? To start, have a look at your financial records and statements. Where is the money going? Where could you find room for optimization? What expenses could be eliminated or reduced without impacting activities?
There are many effective ways to reduce maintenance costs, but not all work for every type of building or business. You may consider installing solar panels, for example. Another idea is to switch to smart systems and devices to control lighting, HVAC, and security. Smart technology is excellent for managing and reducing expenses because it makes consumption patterns transparent. Such an upgrade will produce results immediately.
Another way to reduce operating costs is to practice preventive maintenance. Whether you have a problem with your HVAC, lighting, plumbing, or elevators, repairs can be costly and time-consuming. This is why respecting routine maintenance is critical. Being proactive about identifying problems and fixing them as soon as they arise is an efficient cost-reduction strategy. With preventive maintenance, your building faces minimal damage, and you face lower maintenance costs in the long run.
3. Give the Property a New Purpose
An excellent way to increase the value of your commercial property is to give it a new purpose. This strategy can be incredibly successful depending on the type of building and its location. In time, some places become attractive to businesses, whereas others lose their appeal. Paying attention to real estate trends can help you maximize the value of your property by repurposing it accordingly.
If you want to convert your property into something else, consider its size, position, and location. What type of conversion will yield the best results? Converting a commercial property in an up-and-coming area into something more financially sustainable is often costly. However, the return on investment is worth the effort.
Another thing to consider is that repurposing the building allows you to sign more lucrative rental agreements. Thus, after a conversion project, you can significantly increase tenants’ rent if that is your goal for the building. High-quality tenants contribute to the appeal of a commercial space.
No matter what plans you have for the commercial property in your portfolio, your primary goal is probably to keep the building always occupied. To achieve this goal, you will have to prioritize maintenance. A well-maintained building with low operational costs will always remain attractive.
If you want to make new plans for your property, research your local market. How is the location perceived? What is the local area lacking? Whether you rent out the building or use it for your own business, you need to stay alert about real estate trends to ensure your property can still create value for you. Like residential real estate, commercial real estate is affected by economic trends. As a property investor, you want to be a step ahead of the curve.