If you are thinking about purchasing commercial real estate, it’s very important to be aware of things that you can do to increase the value of it. When you search for a commercial property, look for the potential in addition to its historical data.
Considering that the value of CRE is mostly driven by the cash flow that the property generates, any strategy you take on has the potential to increase the cash flow, decrease the expenses and increase the overall equity and the value.
Here are some strategies you should consider when determining how to make the most of your commercial real estate investment.
Rooftops
Don’t be one of those people who overlook rooftops. Rooftops are often underutilized spaces. Outdoor spaces are generally one of the top factors influencing purchasing decision and it is obvious why.
Affordable options for roof spaces include sustainable gardens, lounging, and entertainment areas with outdoor furniture. Tenants tend to sell themself on accepting smaller rental space when it has great community space to use and show off to friends.
Gyms
Fitness facilities are probably in the top three most in-demand amenities. Commercial gym equipment doesn’t have to be expensive, and there is always a liability to be considered. It is still an addition you can make in one space that can add significant value to all of your units at once.
Some properties offer fitness classes like spinning and yoga. You can bring in personal trainers or instructors and let them advertise and take a percentage of the money they make without adding to your overhead.
Fast internet
We are all aware of the fact that fast internet has become a must-have. With as much as 60% of the population working remotely, millions more are expected to do so in the following years, so fast internet has become a basic utility, not a luxury.
By providing community wifi you offer a lot of value and you may even help some of your renters to pay their rent on time. If you are remodeling the interior, consider upgrading the outlets with USB sockets and even adding more outlets to accommodate today’s number of devices that are frequently used.
Don’t forget about the exterior
Curb appeal in most cases has a major influence on buyer’s decision to purchase. Give your commercial building the advantage by investing in cleaning, landscaping, and prepping the exterior of the building. This may include painting the facade or a deep clean, a new walkway, upgraded lighting, and similar. Make sure all the lawns are freshly cut and the garbage dumpsters are well hidden.
Making sure the grounds of your commercial building are clean is the cheapest and easiest way to increase the value of the property.
Don’t forget about the building’s signage. Signs are typically the first thing someone notices when they approach or enter a building. A sign that is hidden, difficult to read, or damaged can decrease the value of the property. Naming the property might add some charm and character.
Make it eco friendly!
More and more buyers deeply care about the environmental impact of their potential commercial building in terms of water efficiency and energy, as well as the environmental footprint it has.
Investigate all the possibilities to utilize technologies like solar power, recycled building materials for upgrades or renovations, and low flow water-saving plumbing solutions. The key is to invest in technology and solutions that decrease the expenses as well as environmental impact. There also may be some tax incentives for investing in green technology.
When scouting for commercial properties you have to look beyond the historical data and see the potential strategies you can employ in order to make it more valuable and attractive. Know the potential of your property before you close the deals.
