Commercial real estate is an excellent investment. If you own commercial real estate or think about purchasing one, you might want to increase your cash flow and decrease your expenses. Therefore, there are things that you can consider doing to expand and enhance your investment and improve the overall value of your commercial real estate.
The following tips can help ensure your property continues to increase in value and at least not depreciate.
Increase your resident’s rent
This is the easiest method of increase the value of your commercial real estate property. Increasing your tenant’s rent can have a significant impact on the overall value of your property. Although, you will need to make sure that you are asking for a fair value market. Do some research on your local neighborhood to keep your building occupied and not overprice yourself out of the market.
To bring more revenue to your property, you need to cut down your expenses. The first thing to do is gather all of your historical operating statements of your property. Once you do this, you will be able to dictate if there are areas where you can decrease the expenses. For example, you can switch your building’s bulbs to LED lightbulbs or install solar panels to cut down your electricity expenses.
Adding some amenities can make a commercial property more valuable and appealing. Such enhancing amenities may include free Wi-Fi for the tenants, a coffee bar, business center, concierge services, or a gym. These amenities will cost you, but you will be increasing the property value.
Change the use of the purpose.
You can improve the value of your commercial property by remodeling the space or using the building for grounds other than what it was initially intended. For example, if your commercial property is a warehouse, you can apply for a zoning variance and change it to a hotel or retail complex.
Alarm systems, gates, and shutters are some of the security features you can enable in your property for more attraction to tenants.
Have the residents pay the utility costs
You paying for your tenant’s expenses can be a little hard, and it only makes sense that the person using the utilities should be held responsible for the cost that ensues. Your tenants can pay for their electricity, gas, or water usage in office buildings or apartment complexes.
Avoid vacancies at all costs and find tenants to add value to your investment. Although, it would be advisable to find reliable and long-term tenants. Be creative when thinking of methods to find tenants. Consider move-in specials to invite new tenants and ask your existing tenants to refer to the new tenants.
There are so many ways to add value to your real estate investments. You can look up Matthew Griffin, who is the head of a great commercial development company, and him in real estate development. Learn more on how to increase the value of your property. It may seem overwhelming to maximize the value of your commercial property, but these strategies can help increase the total value of your property.