Sunday, 17 December 2017

7 Tips for Increasing the Value of a Commercial Property

Written by Posted On Monday, 10 October 2016 13:28

"Location. Location. Location." Once you've established the commercial property you're representing is situated in a prime location, it is time to move onto the other aspects that make this an ideal investment. Your job as the real estate broker is not to make improvements on the property but to engage the prospective buyer with all the amazing potential this space has. That might require guiding the buyer towards making improvements on their own, but you're going to show them how they can generate a positive revenue stream from that property with just a little imagination. Here are some tips for increasing the value of a commercial property:

Alter the Intended Usage

Let's assume the space is currently a "blank canvas" that was once used for retail. A few counters, some display racks and it will be ready to go again. What would it look like as something different? Perhaps a bistro or coffee shop. It is often easier to create a restaurant space out of that "blank canvas" than trying to modify an existing space. If you're selling an old Taco Bell, it can only be another fast food entity. However, a space that has room for a new kitchen and dining room can be just about anything.

Rent It out as an Event Venue

If the owner intends to hold onto the property, there could be opportunities to make money between renters. Open spaces can host artists who want to put their work on display. It can become a temporary campaign headquarters for a politician. It can also be a meeting place for many organizations.

parking garage charge

Charge for Parking and Storage

Suppose this property is in a happening zone bustling with nightlife. Those clubs and restaurants need parking. You could rent out your spaces to a valet company. If you've got additional storage space, you might find other merchants in the neighborhood who would appreciate a close place for storage.

Make Improvements

It might only take a fresh coat of paint for your buyer to entice renters into the space. Those renters might also appreciate upgrades like security gates. Pedestrian portals provide security and entrance control for a commercial space. The more a landlord can do to improve the space, the greater potential they'll have for renting it out. Renters are always looking for a turnkey operation. That is especially true with commercial properties. They want to get their businesses up and running, and the least amount of time they have to spend on improvements, the more enticing the space becomes.

Raise the Rent

Speaking of rent, your commercial real estate client will be well within their rights to set their rent at any price. Just as there are comps for actual property, you can also find out what the going rate for rentals is in the area. That will provide a good indication for the prospective buyer just how much they can anticipate making each month. It will also provide a baseline from which they can expand.

Bring in an ATM

You can actually own an ATM and install it at your commercial property. If this space is going to be a restaurant or bar, then an ATM is crucial. As the landlord, your client can set that ATM up as a convenience to the renter. It makes sense for their business. Like vending machines — which are another good idea — there are service companies who handle the upkeep and restocking of the ATM. All the owner has to do is sit back and watch the money flow in.

Go Green With Your Power

If there is a viable roof on the property, it could become a solar gold mine. Installing solar panels to create energy can be supported with grants and tax incentives. Once operational, those solar panels can generate enough power to sell back to the power company. That is in addition to supplying energy to the space. It also allows a tenant to claim they are a "green company." That is an added selling feature every business can get behind.

It might help to extrapolate this post into bullet points for a handout. Let your prospective clients walk away with a list of all the possibilities and watch how fast they come back with an offer.

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Megan Wild

Hey there! I'm Megan, I'm a home improvement writer, blogger, and real estate investor and observer. Check out my posts for housing trends and latest happenings in U.S. and Pennsylvania!

www.yourwildhome.com

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