In its first-quarter report, real estate firm CBRE reports that vacancy rates in industrial buildings are near a record low, with rents rising 7.1% from the same quarter in 2020, according to a news report on CNBC. Whether you own or intend to invest in commercial real estate, understanding how to increase its value is crucial. As a property owner or investor, your ultimate goal is to maximize cash flow and reduce expenses to ensure you're keeping a good value foundation for your investment. There are many things you can do to add property value. But to achieve the best outcomes, you need to tick the right boxes to avoid overspending or wasting valuable time. Below are a few tips on how to maximize commercial real estate property value.
Adding square footage to commercial property is one of the most practical ways to boost its value. You can increase the property's value by adding warehouses, offices, conference rooms, or storage space. Adding reserved or covered parking space is another excellent way of maximizing the value of commercial buildings.
While reconfiguring your commercial building space might sound easy, it's not. Before anything, you need to establish your goals and budget, understand existing violations, and review mechanical, electrical, and plumbing structures. You'll also get permits and hire the right team to make the remodeling process less stressful.
Prioritize exterior makeover
The exterior part of your commercial property can have a significant impact on its overall value. Investing in minor property improvements like painting the siding and updating windows and doors, for instance, may enable you to increase rent rates on office space, warehouses, and retail stores. Cleaning your property's exterior also goes a long way in improving value.
In addition to removing garbage and ensuring lawns are well-maintained, deep clean the exterior parts of the building to remove grime, oil, and dust on roofs, walls, driveways, and fences. To get the best results, consider hiring professional commercial cleaners with expertise in utilizing pressure washing systems. There are many benefits linked to the pressure washing system, including efficiency, safety, and eco-friendliness. Since pressure washing involves pressurized water and green cleaning products, you can be sure your premise will be free of contaminants like mold, mildew, and bad odor that can decrease property value.
Update your propertyUpdating your commercial property is a sure way of increasing value and reducing energy costs. So, invest in the latest energy-efficient lighting systems, heating and cooling appliances, and water heaters. Also, don't hesitate to invest in innovative technology to modernize your property. For example, you could install smart parking systems like wireless sensors, vehicle counting tools, and cameras to help drivers find parking spaces with ease. Integrating smart elevators is another perfect way of adding value to your property, as it enhances your tenants' safety and overall experience.
Maximizing the value of your commercial property entails increasing cash flow while keeping expenses at a minimum. However, adding value to any commercial building isn't as easy as it sounds. You need to identify areas that need value-adding components and pick the right projects. Some value-adding aspects worth investing in include space reconfiguration, exterior makeovers, and modern upgrades like installing smart parking systems, elevators, and energy-efficient appliances.