Are you thinking about purchasing commercial real estate? Or maybe you already own commercial real estate but want to know how you can increase its value for renting or to sell on? There are lots of different things that you can do to enhance and increase the value of your investment as most properties will have a lot of potential. Your strategy should aim to increase your cash flow, minimize expenses and increase the overall value of your property. Here, we are taking you through five different ways in which you can boost your commercial real estate investment.
Making Improvements to the Property
There are two different types of improvements that you can make to your investment ad this can either be substantial rehabilitation or cosmetic improvements. If you are going down the cosmetic route, then this can be something as simple as painting and decorating or adding new flooring. If you decide to go down the substantial rehabilitation route, then this normally involves making structural improvements to the property. For example, you could make renovations to the office lobby or change the structure of a shopping center. This will increase not only the property value for your tenants but also for your portfolio too.
Change the Property’s Intended Use
A great way to increase the value of your property is to change what the property is marketed as. For example, if you have purchased an older warehouse, you can keep it as it was originally intended to be used or you could convert it into a hotel, office building or any other commercial type of property.
Another fantastic way to improve the value of your commercial property is to add extra amenities to it that will make it more appealing to potential customers. For example, if you own commercial property on a large piece of land, why not add some steel buildings that would be perfect for storage or will even potentially appeal to farmers to keep livestock? These steel buildings can be a great asset to a commercial property without costing you a whole lot and you can visit Armstrong Steel who is the No. 1 provider of steel building systems to purchase your steel buildings today. Other cool amenities could include putting a daycare center into your office building or adding a courtyard to a hotel.
Decrease Your Expenses
Take a look at your property’s operating statements to see if there are any areas in which you can decrease your expenses. This could be making your property more energy efficient with simple switches such as energy efficient light bulbs or you could have your gas company install individual metres to pass this cost onto your tenants.
Increase the Rent
An easy way to increase the value of your property is to increase the rent. Of course, you should look at the property’s history to see whether tenants are paying market rent or whether there is room to adjust this. If you are making other improvements to the property, then this should justify your rent mark up. Just make sure you don’t price yourself out of the market!