When you own or manage a commercial property, it is your responsibility to maintain its value for as long as possible and also improve its value whenever you can. There are many improvements you can make to your commercial property, some of which require you to spend some money while others just require you to think outside the box. The following are 10 things you can do to increase the value of your commercial property:
- Add Square Footage to the property
This is one of the easiest but costliest ways to add value to your commercial property. If your commercial property is fully rented out but you still have more demand for space, you can add an extension to increase the rentable space. Depending on the purpose of the property, you may improve its value by adding more office, storefront, warehouse, storage, conference, or parking space. However, before doing this consult with local authorities and acquire necessary permissions.
- Increase rentable square footage
There is a difference between the total square feet and rentable square feet in a building. If your commercial building is poorly designed, your rentable square feet is a lot less than the actual square feet, meaning that a large part of the property is not being monetized as it should. To correct this, finish any incomplete parts of the building and convert un-rentable areas, such as excessive lobbies, storage rooms, and others into rentable areas.
- Proper cleaning
The appearance of your property has a huge impact on its value. If your commercial property always looks old and dirty, nobody will want to rent space there or work there, which in the long run affects the value of your property negatively. Invest in professional office cleaning services on a regular basis to get rid of the dirt you can and can’t see using their expertise and professional cleaning equipment.
A fresh coat of paint to both the exterior and interior of your commercial property makes it look newer and more appealing to potential tenants passing close by. It helps the property compete with the newer buildings in the area.
- Make repairs and upgrades to current standards
Have professionals take a thorough look at your property to identify anything that needs repairs or replacement. Also, have them identify the components that could be functionally or technologically obsolete and replace them with modern components. To remain competitive, you must stay up to date with the current trends in commercial properties and keep up with them.
- Improve your security systems
Security is one of the biggest factors people consider when renting commercial space. People need to be assured that their property, employees, and clients are safe at all times. If you haven’t already, consider hiring professional security services to provide round the clock protection for your property. You can also add in some modern security features like cameras, motion sensors, biometric scanners at entry points, among others. Boosting security not only attracts more tenants but also reduces your insurance premiums saving you more money.
- Avoid vacancies at all costs
Having a lot of vacancies in your building means that you are not getting the most out of it. Too many vacancies can also discourage potential tenants from renting as they will be wondering why there are so many vacancies. To avoid vacancies, always keep your existing tenants happy by maintaining a good relationship with them and addressing their issues promptly. Advertise your property or hire a realtor to get you more tenants.
- Decrease expenses
Decreasing your expenses will improve your margins making the building more profitable. There are many things you can do to reduce expenses such as replacing old systems with energy efficient ones, passing on some expenses to tenants, entering into long-term contracts with suppliers, among others.
- Add amenities
You can add more amenities to your commercial property to make it more appealing to prospective tenants. Such amenities include parking, wireless internet throughout the building, among others.
- Increase the rent
This should be the last resort as it can easily blow up in your face when poorly executed. It is possible that your tenants are paying rent that’s way below the market rent. Before raising your rent, hire a professional to advise you whether your tenants are paying the market rent or whether a rent review is warranted at that point.