How to Increase the Value of Commercial Real Estate from the Outside In
The value of commercial real estate isn’t based on a single factor. A lot of it has to do with the general appearance of the property and how the building looks from the outside. There are many things that you can do to not only make the unit more desirable from an interior design standpoint but to improve future revenue as well. Here are five easy ways to increase the value of commercial real estate.
Give the Property Curb Appeal
Clean up the outside of the property so that it has better curb appeal to both potential tenants and potential customers. Remove the trash, paint the outside, and replace the aging siding. You may need to deep clean dirty common areas or spruce up the landscaping to make the space more appealing.
Great landscaping will go a long way in attracting clients and making your building stand out in the listings. However, you first have to make sure that you’re working with the right team. A commercial landscaping Orlando team like servelloandson.com is ideal. They will be able to give you a custom quote for the repair or replacement of shrubs, trees, and flower beds. They will also give you a discount when you purchase multiple services. For example, they could clean up your landscaping and eliminate your pest problem all at the same time for one reasonable price.
Increase Security
Adding gates, shutters, and alarm systems will all make the property more attractive to prospective tenants. This has the side benefit of lowering your insurance premiums. You may need to hire security guards as well.
It would also be wise to add lighting strategically around the premises. A poorly lit building could give the impression of being unsafe, and could discourage some people from visiting after dark.
Reconfigure the Space
Adding space to the building can increase its value. Yet you can get the same benefits by reconfiguring the space, such as by dividing it up into additional rentable spaces. A surprising number of commercial buildings have unfinished spaces that could be turned into rentable units. Adding storage or parking can add value, as well.
Update and Modernize
Buyers and tenants will compare your property to others in the area. That’s why you need to keep up with their expectations. Try to match the quality and amenities of commercial buildings in the area. Furthermore, you should update the HVAC system and water heaters so that they’re more energy efficient. This will save everyone money in the long-run.
Don’t forget to update the signage. Ensure that the signage is large, visible, and easy to read. You’ll get extra points if you name the property.
Keep Your Units Filled
You also have to think about additional things other than the esthetics of the building. Ultimately, the value of the property is based on the revenue it generates. This is why finding good tenants and avoiding vacancies is the best way you can add value to your commercial property. Be careful about raising rents. While this is, in theory, the quickest way to increase your revenue, you might lose current tenants who cannot afford the higher rental rate.
If you have several vacancies, offer move-in specials to get the spaces filled. You could even offer money to current tenants for referrals.
There are a variety of ways you can add value to your commercial real estate without spending a fortune. Understand what is necessary to keep up in a changing marketplace and minimize unnecessary expenses without hurting service.