It has always been a good investment to own a commercial real estate. With the ever-growing number of small businesses, the value of this real estate is even higher than before. However, its value significantly depends on your strategy before you actually start investing in it.
In order to spend your money wisely on your commercial property, pay attention to the following tips.
1. Increase its size
Additional square footage can help raise the value of a commercial property. Of course, you need to bear in mind what is the use of the property – according to the usage, you will decide whether it needs one more office, bigger parking space or a conference room in its premises. Before you start with the building, consult local authorities regarding the approval.
2. Increase the rentable square footage
You need to know that there’s a difference between total square feet of your property and the rentable square feet. If the rentable part of the property is significantly smaller than the total size, it means that a big part of your property can’t be monetized, which is one of the advantages of owning a commercial property. If the design is poor, having too many lobbies and incomplete areas, it will make the property unfit for renting. Do your best to use the incomplete parts to make it appropriate for renting.
3. Make it eco-friendly
Even though this type of investment is more expensive than other techniques, it has become a common thing in many countries, especially in Norway and Sweden, where environmentally-friendly buildings are more attractive to tenants. For example, the most environmentally-friendly hotel in the world has been built in Nordland, the northern part of Norway. It is clear that it’s important to keep up with the latest trends, so you should include sustainable features in your commercial property, like solar panels, energy-efficient appliances and tinted windows. Just a couple of changes like this and your bills will be lower, while the updates can even make the open space look more appealing. In countries like Japan, the United Kingdom, France and South Korea there are even certain tax breaks for making a property eco-friendly, so check with your state or federal government about that.
4. Improve the parking lot
This is a highly useful method for increasing value but frequently overlooked. A parking lot can be improved by adding a certain security features such as alarm systems and gates or even security guards. Your insurance premiums can get lower by adding these features.
5. Improve its exterior
External improvements can add value big time but without being costly, as noticed by experienced property valuers from Sydney. Firstly, painting the outside brick won’t force you to make big structural changes but will give it a fresh new look. Next, pay attention to the doors and windows. If they are outdated or poorly designed, consider replacing them with something modern and practical. Invest in safe and high-quality doors and windows – the tenants will appreciate it. Next, think about the aesthetics of the windows and natural light – it is a big thing what kind of blinds you’ll opt for. For instance, commercial blinds can serve both for protection from bright sunlight and are easily managed so that you can choose how much natural light you want, but also serve the aesthetic purpose, giving a statement about the business.
6. Update the signs
When entering a business building, everybody will instantly notice the sign representing your brand, so make sure it isn’t hidden by landscaping, broken or difficult to read. Keep it up to date and play with different ideas on its size, style, location and material.
The important thing is to have a clear plan on the improvements before you start spending the money. That way, you’ll avoid mistakes and maximize your profit.