But profiting from this lucrative industry isn’t guaranteed. To be successful, commercial property owners need to know how to increase the value of their assets. This allows them to attract new tenants, increase their cash flow, and eventually prepare to sell.
If you want to increase the value of your commercial property, here are six things you can try:
It’s no secret that improving the exterior look of your commercial property can raise its value in the eyes of customers. When people walk by a nice building, they generally place a higher value on it.
Give your commercial property an outside “facelift” to make it more attractive. This could mean adding a courtyard, parking lot, tables, chairs, or walkways. Or it could simply mean keeping up with the landscaping and removing any trash. A little work on the outside of your commercial building can go a long way.
There’s also a lot you can do on the inside of a commercial building to boost its value.
For example, you could improve it cosmetically with new paint, wallpaper, appliances, flooring, or decor. You could even just rearrange the interior furniture to give the space a new look.
Or, you could make more significant structural changes by adding or moving walls or putting in more windows. This can be a big undertaking, but it could pay off in the long run. A successful renovation can make a huge difference in the value of an office or retail building by improving customer and employee satisfaction.
Commercial building renovation is a big task, but is it right for you? Here’s five considerations you need to know.
Anyone in the world of real estate knows how costly vacancies can be. The longer your commercial property goes unused, the more money it loses.
If you rent out a commercial property to a business, there are a few things you can do to minimize vacancies.
For one, you can immediately list properties for lease as soon as you know that your current tenant is planning to move out. You can also treat your tenants well to encourage them not to leave in the first place and offer longer leases to lock in longer lease terms.
Beyond that, minimizing vacancies is all about effective marketing. You need to advertise your space with high-quality photos on top commercial real estate marketplaces while offering a competitive price. By doing all this, you’ll improve your bottom line by maintaining a steady flow of rent.
Another way to increase a commercial property’s value is to lower its operating expenses. This means taking measures to save on things like energy costs.
For example, you might improve your commercial building’s energy efficiency by installing solar panels, implementing automated smart controls for its HVAC system, or simply switching to LED light bulbs. One of the best ways to cut costs is by working with a commercial construction company that can implement money-saving appliances. Whether it’s HVAC systems that cut down on energy costs or lighting solutions that slash your electricity bill, the right commercial contractor will always find solutions to minimize your future costs.
You may also try to expand your commercial property to change what it’s used for and increase its value. For example, you could add new facilities from which to operate additional businesses. Your business has physical constraints when it comes to growth, expanding it gets rid of them and makes it easier to grow your operation, and generate additional revenue. Benefits of facility expansion include:
- Increased capacity: Expanding a facility can provide a business with more space to accommodate additional equipment, employees, or inventory. This can increase the business’s capacity to produce or deliver goods and services, and ultimately lead to increased revenue.
- Improved efficiency: A larger facility can allow for more streamlined operations, reducing bottlenecks and improving workflow. It can also enable the implementation of more advanced technology and equipment that can improve efficiency and reduce operating costs.
- Enhanced customer experience: An expanded facility can provide a more comfortable and convenient environment for customers, improving their overall experience and increasing customer satisfaction.
- Competitive advantage: By expanding its facility, a business can gain a competitive edge by offering more products or services, increasing its production capacity, or enhancing its overall capabilities.
- Attraction and retention of employees: A larger and more modern facility can attract new talent to the business, while also providing a more appealing work environment for existing employees. This can lead to improved employee retention rates and increased productivity.
Increasing the value of your property can be as simple as investing in a commercial remodel or other construction service to add new amenities. For example, you could add free public Wi-Fi access, conference rooms, a daycare facility, on-site dining, a playground, and more. Anything to make the property a little more appealing to tenants and their customers.
As you can see, there are many ways to increase the value of a commercial property. The key is to choose the method(s) that will be most effective for your situation.
To permanently raise the value of your commercial property, renovating and improving it could be just what you need. Contact Connor Construction today to learn how!