If you’ve invested in commercial real estate, you might be experiencing a tough time renting or selling your property while getting the full return on your investment. Namely, the current pandemic had a drastic impact on the commercial real estate (CRE) market, and real estate forecasters predict the pandemic-centric concerns will continue to keep the market on shaky ground.
With this in mind, you might be thinking about selling or renting your commercial property. If that’s the case, here are ideas about improvements to consider that can contribute to increasing your commercial property value and better your odds for renting or selling.
Consider the Demand for Your Type of Property
Current commercial real estate market trends are, as ever, influenced by supply in demand. While you’re contemplating the sale or rental of your property, consider the current demand of the market and how you’re property fits in with today’s demand.
For instance, the demand for commercial office space at the moment isn’t as high as the pre-pandemic era because of the burgeoning remote work movement. However, commercial warehousing properties are currently in huge demand across the US with big retail corporations such as Amazon and Wal-Mart attempting to meet the demands of consumers opting for home delivery services.
Keeping your finger on the pulse of CRE market trends will help you decipher whether your property is viable in today’s market. It can also clue you in as to what kind of improvements you should be making.
Improvements You Should Consider When Selling or Renting
Regardless of what type of commercial property you own, there are some tried and true improvements you can make to provide more appeal to renters or buyers. Here are a few suggestions that might make all the difference between a lucrative deal or having your property stagnate on the market.
Upgrade Your Building Tech
Investors and renters are apt to first look at what kind of technology is available, wired-in, and ready to go in a property. Therefore, look into modernizing and revamping your building’s technology.
For instance, invest in a strong, site-wide wifi system and increased internet speed performance. You may also want to install a high-tech security system. Consult a guide for access control systems, and you will discover that technology-monitored exits and entries in commercial, public buildings are highly coveted features for investors and renters alike.
Cover Cosmetic Improvements
It might seem like a no-brainer, but curb appeal really does matter if you’re trying to offload your commercial property. Furthermore, cosmetic improvements aren’t as expensive as big overhauls on your commercial property.
For example, applying a fresh coat of paint to the exterior and interior walls is an affordable improvement that will work wonders. Furthermore, update appliances, repave the parking areas and invest in some professional landscaping around your property.
Also, think about replacing the floors, and upgrading outdated doors and windows for maximum energy effectiveness. These small, cosmetic improvements won’t go unnoticed by potential buyers or renters of your commercial property investment.
Splurge for Upgrades
Depending upon the condition of your commercial property, this could be a cheap capital investment, or it could be a steep expense. Before you start counting dollar signs, contact a professional building inspector and take a thorough tour around your property to assess what kind of updates need to be done.
You may find any number of commercial property improvements that may need attention. Some of the more pricey updates might include an overhaul of the building’s plumbing or replacing faulty wiring. But not all upgrades have to cost a fortune. Just replacing inefficient lighting for more energy-saving LED lights can add to your property’s value and appeal.
Another point of attention that perks the interest of renters and investors is the condition of the heat and air in a building. Therefore, you should investigate the HVAC system of your building. If you find your air conditioning and heating system needs an overhaul, it can be expensive, but it will make your property more attractive to potential buyers and renters.
The Last Word on Making Improvements on Your Commercial Property
While selling or renting your commercial investment may seem daunting in today’s current market – don’t despair. Every effort you make to improve your property can make all the difference in sales or rentals.
Additionally, you can add your improvements to the profile of your property listing. This will entice potential buyers or renters. At the end of the day, the more you can do to improve your commercial property and bring it up to date, the better odds you have of successfully selling or renting it.