How to Add Value to a Commercial Property
Add square footage to your property., Increase the rentable square footage., Improve the exterior of your property., Update the signage., Increase security and parking.
Step-by-Step Guide
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Step 1: Add square footage to your property.
This is one of the most common ways to add value to a property.
If your commercial property has demand for more tenants and they cannot be added within the previously available space, adding more space can be economical.
Depending on the property's purpose, you may increase its value by adding more office, warehouse, storefront, parking, storage, conference, or employee gathering space.
Having covered or reserved parking can give your property a competitive advantage over similar properties being considered by a corporation or business.
Consult with local building authorities for necessary permissions before starting any construction work. -
Step 2: Increase the rentable square footage.
It is important to remember that within a property, there is a difference between total square feet and the rentable square feet.
If a building is poorly designed, the rentable square feet will be significantly less than the "actual" square feet.
This means a large part of your property that could be potentially monetized is not.
For example, a building with excessive lobbies, unfinished areas, or poorly organized hallway arrangements could end up having a large portion of the property not rentable.
Consider finishing any incomplete parts of the property, or converting any currently un-rentable areas into rentable areas.
For example, one floor may have two large equipment closets.
Combining those two rooms into one smaller closet and renting the other part out as a small office can add value., The external appearance of your property can greatly influence its value.
Fortunately, there are several low cost ways to add value through making external improvements.Negotiate with cleaning and garbage pickup company to provide services to tenants as part of rent.
Making sure the grounds, parking lots, bathrooms, and walkways of your building are extremely clean is the cheapest and easiest way to boost the value of your property.
This means cleaning up garbage, ensuring lawns are cut and well-manicured, removing clutter, and ensuring there are no odd smells.
Update windows and doors.
If the windows and doors of your property are outdated, not fashionable, or poorly designed, consider updating them.
Investing in new windows and doors can not only improve the appearance of your home, but it can also reduce noise, increase natural light, and help reduce heating/cooling bills.
Paint.
Painting the outside brick or siding is a simple and easy way to refresh the appearance of your property and give it a new appearance without making significant structural changes.Invest in professional landscaping.
Professional landscaping can significantly improve the outside appearance of your property at a reasonable cost. , The signage should attract people in from the outside, and should accurately represent a property's purpose.
If signage is inadequately sized in comparison to the architecture (or competing signs), hidden by the landscaping, difficult to read, looks unappealing, or is otherwise a misrepresentation of the property's purpose, you can go a long way in increasing the value of your commercial property by adding new signage or updating the old.
Consider a variety of sign styles, materials, sizes and placements.
Consult with a sign maker to learn of all your options and make the best decisions for your property., Security features like alarm systems, gates, and shutters can increase property value by making the property more attractive to tenants and lowering your insurance premium.
In addition, some areas may justify hiring private guards.
For parking, consider renting from nearby lots that go unused during your tenants’ operation hours.
For instance, your tenants’ businesses may have daytime hours but there is a nightclub lot nearby that is empty during the day.You could consider renting the nightclub lot out during the day to a food truck or another mobile business. -
Step 3: Improve the exterior of your property.
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Step 4: Update the signage.
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Step 5: Increase security and parking.
Detailed Guide
This is one of the most common ways to add value to a property.
If your commercial property has demand for more tenants and they cannot be added within the previously available space, adding more space can be economical.
Depending on the property's purpose, you may increase its value by adding more office, warehouse, storefront, parking, storage, conference, or employee gathering space.
Having covered or reserved parking can give your property a competitive advantage over similar properties being considered by a corporation or business.
Consult with local building authorities for necessary permissions before starting any construction work.
It is important to remember that within a property, there is a difference between total square feet and the rentable square feet.
If a building is poorly designed, the rentable square feet will be significantly less than the "actual" square feet.
This means a large part of your property that could be potentially monetized is not.
For example, a building with excessive lobbies, unfinished areas, or poorly organized hallway arrangements could end up having a large portion of the property not rentable.
Consider finishing any incomplete parts of the property, or converting any currently un-rentable areas into rentable areas.
For example, one floor may have two large equipment closets.
Combining those two rooms into one smaller closet and renting the other part out as a small office can add value., The external appearance of your property can greatly influence its value.
Fortunately, there are several low cost ways to add value through making external improvements.Negotiate with cleaning and garbage pickup company to provide services to tenants as part of rent.
Making sure the grounds, parking lots, bathrooms, and walkways of your building are extremely clean is the cheapest and easiest way to boost the value of your property.
This means cleaning up garbage, ensuring lawns are cut and well-manicured, removing clutter, and ensuring there are no odd smells.
Update windows and doors.
If the windows and doors of your property are outdated, not fashionable, or poorly designed, consider updating them.
Investing in new windows and doors can not only improve the appearance of your home, but it can also reduce noise, increase natural light, and help reduce heating/cooling bills.
Paint.
Painting the outside brick or siding is a simple and easy way to refresh the appearance of your property and give it a new appearance without making significant structural changes.Invest in professional landscaping.
Professional landscaping can significantly improve the outside appearance of your property at a reasonable cost. , The signage should attract people in from the outside, and should accurately represent a property's purpose.
If signage is inadequately sized in comparison to the architecture (or competing signs), hidden by the landscaping, difficult to read, looks unappealing, or is otherwise a misrepresentation of the property's purpose, you can go a long way in increasing the value of your commercial property by adding new signage or updating the old.
Consider a variety of sign styles, materials, sizes and placements.
Consult with a sign maker to learn of all your options and make the best decisions for your property., Security features like alarm systems, gates, and shutters can increase property value by making the property more attractive to tenants and lowering your insurance premium.
In addition, some areas may justify hiring private guards.
For parking, consider renting from nearby lots that go unused during your tenants’ operation hours.
For instance, your tenants’ businesses may have daytime hours but there is a nightclub lot nearby that is empty during the day.You could consider renting the nightclub lot out during the day to a food truck or another mobile business.
About the Author
Catherine Kennedy
Specializes in breaking down complex DIY projects topics into simple steps.
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