5 Ways to Increase Commercial Property Value

Written by Posted On Tuesday, 15 August 2017 12:29

If you’re thinking about investing money in a commercial property, chances are you’re wondering whether there are ways to increase the value of your investment. The answer is yes – there are things you that will improve your cash flow, lower your expenses, and increase the overall value of your property. Five that are guaranteed to do the trick are listed below.

Increase the rent

The rent your tenants are paying can have a huge impact on the overall value of your property. So, if you want to increase it, you can start by researching the market and check whether you can afford to increase the rent your tenants pay you. It’s very important that you don’t price yourself out of the market since that way you’ll only lose money and tenants. However, if you manage to find a way to increase the rent, the overall value of your property is going to increase as well.

Find ways to decrease your expenses

If you want to increase the value of your commercial property, you should also try to find ways for lowering your expenses. The lower your expenses are, the more money you will be able to get once you decide to sell it. Luckily, there are tons of ways you can do this. First of all, you can think about getting LED bulbs for your property. Not only that these use less energy but they tend to last longer as well. Another great idea is to install solar panels on your building or buildings, and start relying more on natural energy.

Add new amenities

Adding new amenities is always going to make your property more valuable. The best thing about this is that most of the amenities you can choose from aren’t expensive and don’t take much time and effort to install. For example, adding a playground in a multifamily property is always going to make it more appealing. Another thing you can do is provide all of your tenants with wireless internet. On the other hand, if you rent your commercial property to a business, you can always think about adding amenities such as conference rooms or break rooms.

Start making improvements

You’ll hardly be able to increase your commercial property’s value unless you start making improvements.  If you don’t want to invest too much money, you can go for cosmetic changes such as changing the wallpaper or applying a fresh coat of paint. Still, large projects such adding new rooms are always going to be more beneficial when it comes increasing the value of your property. Therefore, contacting some of the reliable architecture firms Sydney has to offer and starting a major renovation is always a great idea.

Alter property’s intended usage

Quite often, changing the use of your commercial property can increase its value. For example, old warehouses never cost too much and if you manage to turn one of them into a commercial building, you’ll be looking at huge amounts of money. Of course, projects like this require a lot of time and energy, and you’ll have to be very careful if you decide to take on something like this. It’s also recommended that you have experts check out the place before you make a formal offer.

All in all, looking for a commercial property you can invest is a complex task. You have to look beyond the property’s historical data and imagine what you can do with that place in order to increase its value. And if you find the right property and employ all of the 5 ways mentioned above, making profit will be a real piece of cake.

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