If you’re investing in a commercial property or already have made that investment and are looking for ways to increase the property’s value, then look no further than this handy guide.
You bought into a commercial property with the idea of turning into a booming business hub, perhaps your investment is right in the heart of downtown — a downtown area that needs something different — something new and exciting. Maybe your commercial property could be the answer.
Here are a few ways that you can increase the value of your commercial investment.
Apply for a zoning change
Zoning changes are one of the best ways to increase your commercial investment. You can make an application to your municipal office to change the zoning laws that allow for properties to be used for specific purposes. If you’re looking at doing this, pay attention to the trends in your area.
- Are there more families moving into the area that could use a renovated apartment building?
- What about commercial space?
- Is there room in your already-existing commercial property to house more clients?
Zoning changes are a complicated, sometimes expensive, but ultimately profitable way to raise the value of your commercial property.
Go green
One of the most attractive features of any commercial space, particularly with the current public consciousness, is how ‘green’ the space is. This means how environmentally conscious and how environmentally friendly the space is.
Investing in green technology for your commercial space is a great way to decrease your overall costs (overtime) and increase the likelihood that it will sell for a higher price when you’re ready to do so. This will also attract particular types of business clientele who enjoy that aspect of the property.
Going residential
This will require a zoning change, however, one of the best things to do for your commercial property is perhaps to turn part of it into a residential space. Given that there is always a struggle for affordable housing for the senior population, perhaps it’s time to give them that option in your new mixed commercial/residential space.
Then, you can tailor your commercial clientele to those which would be useful for your senior populous. Consider the things that seniors may struggle with, such as mobility when renovating your commercial space and you could give seniors a forever-home to live out the best days of their lives in.
Make your exterior as appealing as your interior
There’s nothing worse than seeing a derelict, unkempt commercial space for any would-be customer. Your goal as a commercial investor is to make sure that the businesses within your space make money so you can make money yourself.
It is critical that those businesses attract new clients through a gorgeous-looking exterior that is warm and welcoming. Make sure that any grass is cut, any trees, and other exterior shrubs and plants are well kept. Make sure that the paint job is up to scratch and that the concrete outside your property is smooth and sealed.
Think outside the box
It’s true that in order to facilitate any kind of positive change, you generally have to think outside the box. One of the best ways in your commercial space is to literally think outside of the space.
- What are you doing with the roof?
- Is it just sitting there?
- Is it high enough to rent out for, say, mobile phone towers?
You could add a conference room or a fitness centre inside the building to facilitate business meetings and a potential gym rental opportunity for sports teams or personal training businesses.
You could also consider adding epoxy flooring to your commercial space. Epoxy floors are easy to clean, look great, and beautify concrete surfaces.
Looking to sell? Lease long-term
If you’re looking to sell your investment, one of the best ways to ensure investors are to offer longer-term leases to your existing business clients.
A five or ten-year lease is going to be a lot more attractive to a potential buyer — who knows that they’ll have money coming in right away and won’t have to lift a finger — than several dozen or several hundred one-year leases. It’s all about long-term thinking for your potential buyer, try your best to accommodate that thinking first.
Whether you’re investing in a commercial property for the first time, or have been in the investment game for a while now, knowing how to increase your property value is a life-long skill that you can apply to other parts of life. There are plenty of ways to increase commercial property values, but it is sometimes a bit of creativity on your part.
