If you have recently purchased a commercial property, you would probably expect a good return on your investment. Therefore, you will be looking for ways to make attractive gains on your commercial real estate. If that’s the case, then you need to make the right decisions. With due diligence and little research on market trends and strategies, you can achieve higher revenue from your commercial property.
While commercial real estate is often seen as a long-term investment, you can never earn that extra income when you don’t adopt smart strategies to make your commercial site a sustainable income generating asset.
Considering that, here are five smart ways to boost your commercial real estate value.
1. Make Improvements To The Property
First and foremost, identify the areas that need to be repaired or improved; you can hire a home inspector or real estate broker to highlight those areas in your property that need fixing. Be it a substantial upgrade or cosmetic repair, office building improvements can significantly boost the value of your commercial property.
Besides major improvements, you can also revamp your commercial site with new landscaping, wallpapers, a fresh coat of paint, or new décor.
2. Add More Amenities
Fixing up prominent damage to your property and doing major innovations may not be enough to boost the value of your commercial property. Besides, you might need to add some amenities that benefit your tenants.
These can include bigger trade halls, fully-furnished conference rooms, fitness center, automated coffee bar, and much more. Moreover, these facilities can be complemented with profit-generating roof space for high-end convention halls and automated laundry machines.
3. Increase Rent
It’s no surprise that increasing your rents will eventually increase your commercial property value. Once the lease expires, review real estate trends or online listings to decide the rent for a new tenant. However, you can also increase the rent for your existing lessee if they have been renting the site for a couple of years.
Don’t forget to leverage the improvements you have made to justify the rent increase. Besides, pay close attention to rent markups of some similar types of commercial properties in your area.
4. Save On Property Taxes
After getting your commercial lot or building appraised by a professional, look for some ways that can help you save on property taxes. Since it’s not an easy task, you can reach out to an attorney to help you with this.
5. Cut Costs
Well, keep in mind that increasing your commercial real estate value will not do you much good if it is still bleeding you dry. To prevent this, find some ways to cut your operating expenses so you can reach maximum efficiency.
While there are many ways to do so, you can have your tenant pay their own utility cost. For instance, if you are paying for gas, electricity, and water usage, you can install a sub-metering device to determine the accurate bill for each of your tenant.
The Bottom Line
Boosting your commercial property value requires more than just researching market trends. However, implementing the aforementioned strategies will certainly help you get attractive returns on your commercial real estate property investment.