Today, more and more startups are planning to open office or physical stores; thus, the need for commercial spaces are in demand. Take advantage of this rush and increase the value of your commercial property by following these expert tips.
Improve the quality
What’s the best way to increase your property’s value? Improve its quality. No one wants to buy a commercial space that is not ready to use; or that still demands a lot of fixes. And we don’t mean just repairing damages. We mean using better, more current paint colors, setting up an indoor or outdoor landscape, rebuilding rooms designed for your target market, and adding amenities that are of great importance to your potential buyers such a relaxation hub, a storefront, a multipurpose hall, or a snack shop. If the property generates more income and it provides convenience, it is a win-win situation for both the Landlord and the Tenant.
Study the historical data of the property
Studying historical data means studying everything about the property’s past financial history and activities. This could be the building or company’s earnings, revenue, financial growth, and the cash flow it generates. Historical data is great information that can simultaneously help you increase property value and decrease your expenses. It can also show you how to price and improve the property, as well as predict any possible financial constraint you may face in the future. In other words, historical data helps you make wiser decisions and prevents you from making any wrong turns that could hurt your business.
Provide a long-term benefit to your customers
One great thing that you can do is to lighten the load of your tenants’s wallet in the long run such as cutting down utility bills by replacing energy efficient bulbs, solar panel systems and well as low flow water fixtures. The last suggestion may sound like an expensive upfront cost, but if you can explain how much they could save by using solar power and reducing water waste, it could be of great advantage for both you and your tenants. Properties with these energy efficient upgrades attract a higher quality tenant, and most often resulting in a higher net operating income for the landlord.
Who and what are its neighbors?
Your neighbors can affect the value of a property. And when we say neighbor, we mean the people living in your vicinity and the kind of properties that surround your commercial space. Even the condition of your neighbor’s home can make a negative or positive impact to your sales and Tenants. Neighboring houses with physical and legal problems for example, can aggravate the value of the property you’re putting up for sale. So before buying a house or commercial property that you want to refurbish, sell or retain as a long term investment, make sure you’ve got neighbors with good reputations.
Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis. Contact us here.