How Do I Increase the Value of my Commercial Property?

If you own or manage a commercial property, or if you are considering purchasing commercial real estate, you should know that there are a number of things you can do to increase the value of your property. If a property appears unkempt, outdated, unsafe or inconvenient, the value is going to drop. On the other hand, if a property is well-maintained and features desirable amenities, ample parking and secure grounds, you’ll ignite a buyer’s interest. There are also several things you can do to increase your cash flow and decrease your expenses, increasing the overall value of your commercial real estate.

Let’s take a look at 6 ways to increase the value of your commercial property…

Add Amenities:

The right amenities can add a lot of value to your commercial property. It’s important to first know the needs and wants of potential buyers, customers or tenants. For example, if you own an apartment building and the majority of your tenants are active professionals, you can raise the value of your property by adding biking and walking paths and bike racks or create a community conference room or workspace. Other high-demand amenities likely to increase the value of your property include, swimming pools, dog parks, playgrounds, clubhouses, and WiFi in common areas.

Maintain the Grounds:

A well-maintained property says a lot about your business. Potential buyers, tenants or customers are more likely to trust, respect and show interest in a property that respects itself. When it comes to commerical property grounds maintenance, be sure to consider routine and corrective maintenance such as pest control, pavement repairs, sprinkling system, drainage, exterior lighting and more.

Provide Parking:

Ample parking can make a major difference when an investor is considering purchasing your property. Even if your property has everything on a company’s or investors’ checklist, they still may go elsewhere.Evaluate the land surrounding your property. Is there unused space that you can dedicate to parking? You don’t want to sacrifice too much green space for a decent-sized parking lot either, so make sure to consider all your options.

Add Security:

No matter where your commercial property is located, security will make visitors feel at peace and increase value. Consider adding a gate or alarm system or hiring security for your commercial property if you don’t already have security in place. An attractive gate can also have curb appeal and add thousands of dollars to the value of your property. A gate can make any property seem more luxurious. Potential buyers or tenants will value a secure living or working space.

Landscaping:

Have you ever taken a stroll around an unfamiliar neighborhood and been stopped in your tracks by a stunning business? Perhaps the property had a jaw-dropping landscape design that complemented exterior paint colors so well that you could not help but stop and stare. People are attracted to beauty in all forms, and a commercial property is no exception. Sometimes, a fresh coat of paint and professional landscaping is all you need. When you increase your commercial property’s curb appeal, you increase the property’s value.

Upgrade Utilities:

One sure way to attract tenants or buyers is to update appliances and utilities for cost-efficiency and convenience. As a result, your commercial property will keep up with customer demands. The cost of electricity is on the rise across all sectors in the United States. Likewise, water utility costs are growing in certain areas. By replacing outdated appliances with modern ones, you’ll not only save money in the long-run as a commercial property owner but also attract buyers who want to enjoy the benefits of new utilities.

Create a multipurpose space:

Another way to drastically increase the value of your property is to consider repurposing the space, or using the building for a purpose other than what it was originally intended. For instance, imagine a large industrial warehouse in the heart of downtown. While this type of building is fine to have in your portfolio, imagine what the worth could be if you converted the space to an artsy hotel or trendy condos. Of course, a conversion project such as this is a massive undertaking (of both time and money), but it can pay off big time in the end.

Increase your tenants’ rent:

This one seems like a no brainer, but it is one of the easiest and fastest ways to increase your cash flow. Increasing the rent your tenants pay, even  by a small percentage, can have a tremendous impact on the overall value of your property. To start, you’ll need to do some research of your local market. In order to keep your building occupied, you’ll need to make sure that you’re asking a fair value market.

Minimize your expenses:

In addition to bringing in more revenue, consider areas where you could cut back or consolidate, or even cut costs completely? Taking steps as simple as switching to LED lightbulbs or installing solar panels to cut down on your utilities expenses can add tremendous savings in the long run as well as add value to potential commercial investors.

Optimize your marketing:

Whether you’re an apartment complex, office building, or a free standing business, optimizing your marketing efforts to increase revenue can be a game changer. Taking steps such as these helps decrease vacancies, drive revenue, enhance branding, and more. Utilizing smart and cost efficient marketing strategies to help reach your target market — and improve your bottom line.

Are you looking for ways to increase your commercial property value?

Contact us today and one of our team members will get back to you as soon as possible to answer all your questions and provide additional insight for any of your construction needs.