How to add value to your commercial property
Commercial property is often seen as a long-term investment with incremental year-on-year gains. However, there are some ways that you can increase the value of your commercial investment – we take a look at the simplest methods of doing so which won’t cost you a fortune.
If you’re the owner of an industrial property, this may be easier said than done. However, whether you own a warehouse, retail outlet or residential property, you can add instant perceived value by maintaining the perimeter, ensuring the façade is neat and tidy and the car park, if appropriate, is well-delineated as well as keeping the area litter-free. Any garden areas need to be regularly maintained, the grass cut and the weeds dug out.
Retail and office spaces will benefit from modern, secure, energy-reducing windows and doors which will not only let in more light and reduce noise but also demonstrate that you’ve invested in your property.
If the interior of your property is looking a little dated, get it professionally decorated in neutral shades. This is a sure fire way of attracting the right attention from quality tenants – they can either simply occupy the property and start trading or can stamp their own individual touches on it.
Also consider the utilitarian areas of a property – kitchens and bathrooms in particular. If you wouldn’t want to use the facilities why should your tenants?
Increase its size
If you can extend your property to increase its size, you can either get more tenants in or charge more rent. You will need to seek relevant planning permission before you alter your building.
If you can’t extend, think about maximising the rentable square footage. A qualified surveyor may be able to help you re-evaluate the space and add to the area that you can charge rent on – for example, a large but under-utilised reception area may be able to become a rentable room in an office block or an unused attic space could become an extra bedroom.
Put the rent up
Perhaps the simplest and most cost-effective course of action is to raise the rent. However this has to be tempered with the knowledge that if you raise the rent too much, your tenants may leave and you may have a vacant property on your hands which will generate no income whatsoever. Do your market research carefully and evaluate what the ceiling is for similar properties in your area. If you find you are charging too little, write a clause into the rental agreement at renewal time that the rent will increase in line with market values. This will be especially relevant if you’ve recently made improvements to the property.
Request a business rates re-evaluation
If you’re paying a substantial amount of business rates ask your local assessor to re-evaluate your property. It could be that the current rateable value is based on an assessment which was done at the height of the property boom and could be reduced, saving you money.
If you need advice or information on any aspect of commercial property ownership, leases or valuations, contact the Eddisons team. Our experienced and professional staff can offer you confidential advice on your commercial property portfolio.
Written by: Steven Jones on Wednesday 27/04/2016