Location is the single most influential factor in deciding the value of a commercial property.
However, this doesn’t mean that other factors are not important.
As a property owner, you may be beyond the point where you can do something about the location of your property but you can still control a number of other factors that can have an influence over the value of your property.
Let’s see what these factors are and how you can tweak them to boost the value of your commercial real estate:
Renovate And Repair
If you have an old property, it is important to make sure that the parts (roof, walls, foundation) and appliances have not worn off or need replacement.
This means it is time to fix that leaky roof and seal those leaky windows. These repairs don’t just make your property more desirable, they also make the property more energy-efficient, something that can be a huge selling point.
For instance, a commercial roof repair job will not just fend off the rain and snow more effectively, but will also improve the insulation ability of your property. Not to forget, it will be next to impossible to even ask for a premium price for a property with faults.
While you are getting the faults fixed, it is also a good idea to start a renovation project. There are several choices that are perfect for different budgets. Even simple cosmetic improvements can dramatically boost the value of your property.
Pay The Cost Of Efficiency
As mentioned earlier, the energy efficiency of your property is a great selling point. A property that is better insulated and boasts better energy efficiency will not only fetch premium quotes, it will also attract a larger number of prospective offers.
One of the most effective ways to make your commercial property more energy efficient is to replace the electronic items. Depending on your budget, you can replace anything from old light bulbs to components of the HVAC system.
Sure, replacing electrical appliances may be an expensive undertaking but you can rest assured that you will get a nice return on your investment in the form of the enhanced value of your property.
In order to cut down their electrical bills at any other property, the buyer will have to make this investment themselves. In this case, you have not just made the investment for them but have also taken care of the legwork. This can be a great selling point for your property.
Increase The Rent
This doesn’t mean that you can simply decide a new figure and let the tenants know. Increasing the rent is a complex decision. First, you must check the historical rental data of your locality to see if your tenants are paying as per the market standard. If that isn’t the case, increasing the rest will be easy.
However, if your tenants have been paying as per the market price, then increasing the rent may be a bit more complex. In such cases, an increase in rent should be justified with an improvement in the amenities on your property.
With that said, more rental income from your property can be a lucrative selling point. Not to forget, even if you are not selling, more rental income will be great for your property portfolio.
Getting a premium price for your commercial property may be complex but the returns are well worth the effort that is involved.
Did we miss out on any ideas that you have used to improve the value of your commercial real estate? Share them with us in the comment section!