Whether it be an office block, a shopping center, or a leisure facility, investing in a commercial property can be exceptionally lucrative. Particularly if you find effective ways to add value, the potential return on your investment can be enormous.
Be careful, though. Not all renovations can be considered upgrades, especially given that some can actually devalue your property. Others, however, pay for themselves quickly and continue generating profit from there. It’s important to plan well to ensure that any renovations have the desired effect.
To give you a helping hand, this guide includes five of the best ways to upgrade an investment property for profit. From the cosmetic to the functional and everything in between, these changes could send the ROI on your commercial property through the roof.
One of the many unexpected lessons the Covid-19 pandemic taught us was the importance of the outdoors. And, as indoor spaces continue to face restrictions, workdays and leisure activities alike have, where possible, made the move outside where it’s safer to interact and gather in groups.
Why not consider investing in the space around your building? Depending on the size of the land, you could create convenient and comfortable outdoor co-working spaces or build a rooftop terrace for additional restaurant seating.
If you’re not sure how best to make use of your commercial building’s outside space, take a look at the demographic that you serve and the services that you offer. There will most likely be a clear solution.
The move towards sustainability is one of several major trends impacting the construction industry and for a good reason. It takes an awful lot of energy to power a commercial building and they can be extraordinarily wasteful. As such, companies are looking to make them more sustainable from the point of construction.
You can carry that torch even further by introducing new eco-friendly technologies as they become available. They could include, for example, solar-powered electricity and water-saving washroom facilities. Not only will this appeal more to clients, consumers, and tenants, it could also save you a lot of money.
From shoppers to residents, users of any commercial building will want to know that they’re safe and secure on its premises. Find ways to safeguard people both inside and on the grounds of your property by investing in top-of-the-range security and privacy features. For hotels or restaurants, a panic button alarm for hospitality staff would be a great investment.
Think CCTV systems for shopping centers, tinted windows and sturdy fences with intercoms for flats, and code-activated barriers for private members’ leisure clubs. You may also consider the service of a security personnel from the security guard services.
If there are any areas of your commercial property that aren’t bringing in any money, it might be time to consider altering how the space is used. This could mean changing a waiting room into a small shop or introducing a café where there wasn’t one before.
An even bigger overhaul is also an option and has the potential to boost your property’s overall value massively. Say, for example, that the property you own currently operates as a hotel but just isn’t bringing in the clientele it needs to. Turning it into flats could help to ensure the consistent, high-figure income you’re looking for.
A great way to up the value of a commercial property is to expand it. In doing so, you can introduce more facilities or make room for more tenants. However, don’t seek to expand if you have no use for space. Empty rooms and vast, unused courtyards are unappealing and could even have a negative impact on the value of your property.
When it comes to calculating the value of your commercial property, it’s worth factoring in how much more it might be worth if you took the above tips on board. What might your profits look like if, for example, you expanded the property’s outdoor space or made better use of the interior?
Chances are, you’ll stand to add an awful lot of value if you follow any or all of these five tips.
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