You didn’t become a commercial real estate investor because you thought it would be an easy job. You knew hard work and long hours would be involved to get the most out of your commercial investment properties. Although you hope that each property you add to your real estate portfolio will organically increase its value over time because of its onsite amenities and desirable location, there are additional strategies you can use to improve your commercial property’s value.
Price Commercial Management has years of experience effectively managing commercial properties, marketing them to prospective tenants, and keeping the property looking its best. With our first-hand experience in the commercial real estate world, we know the ins and outs of commercial property value and have compiled a list of our favorite ways to add value to commercial properties. Follow along to learn more.
6 Strategies to Improve Commercial Property Value
Whether you’re looking to increase a property’s value in your portfolio or increase its value before putting it on the market, here are six factors that affect commercial property value (and what to do about them).
Maintain Curb Appeal
What is the first thing that visitors and prospects notice when driving up to your property? Are the grounds beautifully maintained? Have the windows been washed recently? Are the lines on the parking spots fading or there are noticeable cracks in the sidewalks? Even though the main value of the lot is the building itself, you need to maintain the exterior of the property just as much as you do the inside. The curb appeal of your commercial property plays a significant role in its value so consider landscaping, exterior painting, light bulb replacement, parking lot repairs, and anything else that someone may notice upon visiting your property.
Renovate the Interior
Is the interior of your building stuck in the 1980s? If the interior of your commercial property is looking a bit dated, you’re doing yourself a disservice. Potential buyers or tenants are often looking for well-kept, modern spaces where they can easily picture themselves working. Perform a walkthrough of your property and take it in through the eyes of a potential tenant. Does the flooring need to be updated? Can swapping out fixtures make the space feel more modern? Are all appliances in shared spaces working correctly? Are the layouts of the offices or shared spaces conducive to the needs of tenants? Look for ways to renovate your space and improve what you already have while finding ways to modernize the property with new technology.
Focus on ESG
Energy efficiency is often an overlooked way for commercial investors to increase the value of their properties — but it shouldn’t be! An energy-efficient commercial property is much more marketable than one without a focus on energy efficiency. For buyers, the eco-friendly approach can help lower operating costs and help increase profits. Additionally, it can be a major selling point for prospective tenants, making your property a top option for leasing (even if for a premium rate). Consider making updates to your building’s HVAC system, swapping out old appliances for energy-efficient alternatives, installing better insulation, or swapping out your light fixtures to be LED. All of these changes can help lower your operating costs and attract tenants who value ESG efforts.
Depending on the location of your properties, you may find that one of the most sought-after amenities for tenants is parking. This is a great perk they can provide their employees, making it a must-have for many commercial real estate investors. Ensure that your property has enough parking to comfortably fit all the employees in your building, along with additional parking spaces for visitors and vendors that may be visiting. Don’t forget about electric vehicle charging either! Not only will this be an added perk for tenants in the building but help focus on your property’s sustainability efforts as well.
Add On-Site Amenities
In the post-pandemic world in which we find ourselves, it’s more important than ever to make your commercial building a destination for all of its employees. With more individuals having the option to work from home, you need to find ways to keep them coming into the office — which will help convince your tenants to renew their lease in your space. An easy way to get employees to come into the office each day is to offer a variety of building amenities such as a fitness center, conference rooms, onsite cafes or retailers, outdoor workspaces, bicycle or scooter rentals, lawn games, and more. Even the smallest amenities can make the biggest impact for tenants.
Hire a Commercial Property Manager
Depending on the size of your commercial real estate portfolio, it may be time to hire a commercial property manager to help you handle the day-to-day operations at the building. By outsourcing the day-to-day activities, you can have peace of mind knowing that the basics are being handled — rent payments are being taken, proper maintenance is being scheduled, and vacancies are being marketed to prospects. You’ll also have someone on the ground day in and day out that can give you guidance on how to improve your commercial property value since they have a different perspective on what improvements the current tenants would like to see.
Hire Price Commercial Property Management
Utilizing a property management team can streamline all of your processes at your commercial properties and give you a completely hands-off role with your property. A Price Commercial Management property manager will help you ensure your property and your tenants are well taken care of resulting in long-term, happy tenants and a strong cash flow. The Price team provides investors the opportunity to take a hands-off approach to their properties while confidently knowing that their properties and tenants are in good hands. Overall, have more free time while we focus on ensuring that your properties continue to be a source of future income.
Price Commercial Management crafts customizable property management plans based on client needs, including:
- Rent Collection
- Lease Enforcement
- Monthly Property Reporting
- Expense Management
- Revenue Enrichment
- Property Assessments Scheduling
- Routine and Preventative Maintenance
- Relationships with Licensed and Insured Contractors
- Aesthetic Maintenance
Free yourself from the hassle and burden of managing your own property or that other sub-par property management companies have added and let our trusted and proven record go to work for you.