Strategies To Elevate The Value Of Your Commercial Property
Commercial property is a promising and long-term investment. While residential property is also a lucrative endeavor, commercial property has its scope and ability to provide constant and substantial financial security, regardless of the fluctuations in the market.
However, considering the ever-blooming competition, the changes in the modern world, and the fluctuations in the real estate industry, the value of your property may face occasional downfall. And, the decline in the property value may affect your profit.
To thrive in this environment, you need to think outside the box to implement strategies that will elevate the value of your commercial property.
Keep Your Tenants Happy
If you’re a commercial property owner, the first thing you need to focus on is your tenants. A commercial property without tenants is like a ship without a crew – adrift. In trying to lure more tenants, it is crucial to keep your property well-maintained, cleaned, and structurally appealing.
Make attempts to keep your existing tenants happy. In the business world, the golden rule is ‘a bird in the hand is worth two in the bush.’ So instead of solely trying to attract new clients, prioritize the existing tenants and their satisfaction.
Maintain a good communication with the existing tenants that will help you in three ways:
- It enables you to gauge the things that satisfy or are dissatisfied with them. So that you can work on it to make them happy.
- As tenants will be more familiar with their individual spaces, they can easily point out issues down the road. This helps you to nip the issues in the bud, preventing them from turning into larger and more expensive complications.
- This way, you can ensure a more personalized attention and approach to your tenants that makes them feel comfortable and builds trust in you. Chances are higher for the satisfied customers to renew the contracts/leases.
On The Side Of Improving Commercial Property
Besides the location, amenities and physical appearance of the building also play a vital role in determining the value of a commercial property. So keep in mind these points to increase the value.
Increase The Curb Appeal: Your exterior has much to do with elevating the property value and triggering an immediate impression. Look for any damages in the roofs, windows, patios, and walls and try to fix them. Keep your garden/landscape well-groomed, and cleaned. They will enhance the curb appeal of your building.
Renovate And Revamp As-Needed: Who doesn’t want to embrace the fresh look? The dated infrastructure and worn-out features can make the building dull. Renovations often give you a stunning and brilliant interior that justifies the rental value.
Restrooms, living areas, reception areas, lobbies, and outdoor spaces are some areas that often require a facelift you must consider. Also, upgrade the flooring, structure, painting, and interiors.
Upgrade And Modernize: When you think of renovation, consider modernizing your building system. Old building systems can scale up the repairing/maintenance costs, along with the bills. So upgrade your systems such as HVAC, plumbing, electrical, lighting, fire and emergency, and roofing systems with modern ideas and solutions. This would automatically increase the value of your property, as well as the rental amount.
Focus On Maintenance: Maintenance isn’t limited to keeping things clean. It goes beyond. Give ample attention to ventilation, plumping, and electrical systems. Regular inspection for wear & tear, pest infestation, necessary replacements, drainage, air filters, outdoor lighting, etc. is essential. This proactive care will keep your property healthy and worthy.
Increase The Security Of Your Building
When it comes to commercial real estate, Tenants will always look for a property that offers a full swing of security. So upgrading your security system is essential. Installing security cameras and alarms, and conducting regular security audits are some common ways to improve security.
However, don’t overlook the small yet critical details that go unnoticed. Things like tripping hazards, ensuring well-lit surroundings during nights, fixing broken doors and windows, trimming overgrown tree branches and more can easily slip through the cracks on which you must focus to ensure the utmost safety at your commercial property.
Re-Evaluate Your Commercial Property
Most importantly, reevaluate your property to claim some deduction in the tax if you deserve any. Sometimes, your property’s assessed value might not reflect the current market value. Or, sometimes there might be errors that have occurred. These things may cost you a lot in terms of tax returns. So contact your local tax assessor to reevaluate your property.
Or, you can simply hire a real estate agent or lawyer to assess your property value. What’s more, is that they will guide you to claim low tax payouts by pointing out your potential deductions and eligibility for depreciation. But before hiring one, check their reliability through your family/friends’ references or a legitimate website like ThreeBestRated®. Because only a skilled one can assist you to gain the most.
All these may look pricey at first glance. But you have more affordable options at your disposal. Always well-kept commercial properties not only make every penny spent worthwhile but also possess the magnetism to draw in a flock of tenants that will ultimately double your returns.
November 16, 2023