If you own a commercial property, you may benefit from taking the time to sit down and brainstorm ways that you can increase the value of your investment. Finding creative ways to increase the value of your property has incredible pay offs that include better marketability, and tax benefits culminating in an overall greater cash flow.
We’ve put together 6 tips to get you started on improving your commercial property, each designed to create a more valuable asset which generates higher returns.
1. Give it a makeover
This tip refers to quick, easy and cheap cosmetic changes to the exterior and interior spaces of your property. The aim here is to increase the value without having to shell the time and money out for an entire renovation. Repainting, cleaning the outside spaces, planting a gorgeous garden, or changing the wallpaper and flooring are fast yet visually effective ways to modernise your property and thus increase its value. Even small decor additions or changes can be enough to improve its overall look.
2. Add amenities
Adding or updating pre-existing amenities is a great way to increase the value of your commercial property. Ideas for new amenities will vary according to the type of property you own; if it’s a shopping area you may like to add new public bathrooms or communal spaces.
Alternatively, if you own a sporting venue you could put in new change rooms, shade coverings or other facilities – there are even government or private grants available to sports clubs for new amenities. If you’d like to learn more, see this guide to grants for sporting clubs by Greenline.
3. Retain your tenants
For commercial properties, attracting reliable and long-term tenants is crucial in increasing the property’s value. Consistent occupancy reduces vacancies, ensuring a steady flow of rental income. This is a fundamental factor in determining the property’s overall value to you.
Reliable tenants who commit to long-term leases provide stability and predictability in income, reducing the risks associated with frequent turnover or prolonged vacancies.
Additionally, stable occupancy will improve the reputation of your property within the local community – adding value when you decide to sell or when you must inevitably find new tenants at some point or another.
4. Give it a name
This is branding 101 – attributing a name to your property increases visibility and memorability. By naming your property, you create a brand that resonates with potential tenants, investors, and the public.
A memorable name enhances marketing efforts, setting your property apart from competitors and making it more easily recognisable in listings and advertisements. You may even create a community landmark out of it. This increased visibility amplifies the property’s presence, helping it stand out in a crowded marketplace and attracting attention from those seeking commercial spaces.
5. Commit to a full on renovation
If you’re truly dedicated to increasing the value of your commercial real estate, and not afraid to invest in the process, renovations are the obvious route to success. They serve as a proactive investment, allowing you to modernise and upgrade the property to meet evolving market demands and tenant preferences.
Committing to renovations demonstrates a dedication to maintaining and improving the property’s quality, functionality, and aesthetics – factors that directly impact its value in the real estate market.
6. Find a better property manager
Hiring a qualified and experienced property manager can do wonders for your property’s value. A good property manager isn’t just a glorified caretaker; they’re the linchpin in maximising your property’s value.
Their expertise isn’t just in handling day to day operations but also in strategically positioning your property for success and offering you advice from an experienced perspective.
From performing thorough market analyses to implementing marketing strategies, a skilled property manager can be responsible for guiding your property towards profitability and sustained growth in value.
Conclusion
No matter how you decide to take our advice on improving the value of your commercial real estate properties, as long as you implement ideas that are creative and formed in consideration of your local market, you have a good chance of increasing cash flow and the overall value of your investment. Remember, the small things matter, and there is always room for improvement if you can think outside the box.
