Commercial real estate can be a lucrative industry. If you’re considering investing in your existing building, renting to tenants, or selling your property to a prospective buyer, these few tips will help you to increase the value of your property:
Make it Eco-Friendly
New buyers care about the environmental impact of their potential new commercial building in terms of energy and water efficiencies, as well as environmental footprint. Investigate the possibilities to utilize emerging commercial technologies like solar power, recycled building materials for any upgrades or renovations, and low flow water-saving plumbing fixtures, increased insulation, and even energy efficient light bulbs. They key here is to invest in technologies and ideas that ultimately decrease expenses and environmental impact. There may even be tax incentives to investing in green technologies to sweeten the deal.
Make it a Blank Canvas and Increase Rentable Square Footage
It’s integral to present a clean slate to new prospective buyers when you’re considering placing your existing commercial building on the market. Much like critical aspects of home staging, your first step should be to rid the space of any pre-existing business, including photographs, equipment, and furniture. A blank canvas will allow your prospective buyer to envision their business occupying the space.
The second stage of making a blank canvas appealing to a buyer is to give every inch of your building a superb deep clean that includes windows, floors, carpets, walls, etc. A clean and clear office or commercial warehouse presents an inviting and prepped environment. Without constructing a new addition, the clean slate approach will give the illusion of increased square footage made available to the buyer for potential rental purposes, or for the requirements of their existing business.
Depending on the purpose of your building and your knowledge of your prospective buyer, you may wish to repurpose this newly exposed space as additional office space, conference, storage or warehouse space, defining its new purpose.
Improve the Exterior
Curb appeal is a major influencer in many buyer’s decisions to purchase. Give your commercial building an advantage by investing the time in cleaning, landscaping and prepping the exterior of your building. This may include a fresh coat of paint or a deep clean, a newly poured or rebuilt walkway, upgraded lighting, etc. Ensure that lawns are cut, and garbage dumpsters or pick up stations are well hidden from the street.
Making sure that the grounds of your building are clean is the cheapest way to increase the implied value of your property. In addition to an eco-friendly approach to increasing value, upgraded windows are doors will not only reduce operational costs and utilities, but they will have a clean, upgraded and streamline aesthetic that’s appealing to a potential buyer or renter.
Upgrade your building’s signage. This is typically the first thing that people will see as they approach or enter your building. A sign that is difficult to read, hidden by bushes and other landscaping elements or needs a repair can decrease the value of your property. Keep your new sign up to date by researching new materials, aesthetic principles, sizes, and placement. Naming your property may also increase charm, character and desirability. Consider changing it to include where it sits geographically, using the street name, or a historical aspect.
Improve Structural Integrity
This suggestion is more useful to sellers whom own the entire commercial property. Inspect the property and building for signs of degradation or general wear and tear. Having a contractor or architect come in to do an assessment of your building is a good way to investigate possible structural repairs that will need addressing. Make sure the frame of the building is sound, the waterproof membrane or roofing does not leak, and the foundation is clear of any cracks.
In addition, ask about updating the methodology of the repairs. Instead of filling an attic with insulation again, for example, ask your architect if the rafters can be accentuated or left exposed, embracing a more modern, open visual aesthetic.
Increase Parking, Security and Rent
Increase the value of your building for potential buyers or renters by ramping up security measures like alarms, gates and shutters, making the property more appealing to tenants. Upgrading security will also likely reduce the insurance premium of the property. Some areas may even benefit from hiring private security guards.
Re-surface your parking lot if it’s in need of an overhaul. If you have a gravel parking lot, consider paving it and installing new lighting to not only improve its functionality, but its appeal as well. Eliminate any weeds, rough patches and have the lines repainted. If you don’t have a parking lot, considering renting space from a neighbouring building or property to offer to potential renters or buyers as a valuable selling point.
Commercial real estate owners and buyers are primarily interested in generating income, and one of the easiest ways to do this is by raising the rent of your building. If you’re selling a vacant property, the increased space and upgrades will lend themselves to raising the rent of the property in an up-and-coming or established area. Likewise, if you experience a high occupancy rate of 90-100%, this may justify your choice to raise the rent.
