5 Ways to increase the value of your commercial property.
Photo by Nastuh Abootalebi on Unsplash
Commercial property is a long-term investment, and you are going to want to maximise this investment throughout its lifetime. Here are 5 ways to increase the value of your commercial property.
1. Make building improvements
The exterior of your office premises, retail or industrial unit, should be as well maintained as the interior. Ensure the perimeter is secure and any green areas well maintained or landscaped. Give the building itself a fresh coat of paint. Would new windows allow more natural light or offer better sound proofing?
2. Improve amenities
By adding such things as extra car parking, a gym or conference space to a commercial property you can improve the worth of the building. If you also consider bringing in such things as snack and drink machines, or allowing advertising space, you can have additional revenue.
Bearing in mind that as from April 2023, it will be an offence to continue to let or rent out a commercial property if it does not have an EPC (Energy Performance Certificates) rating of at least E now could be the time to invest in green technology. You are also going to save yourself money with more energy efficient heaters, lighting, and air conditioning.
3. Increase tenants’ rent.
Commercial leases usually contain a rent review clause allowing for periodic review of the rent upwards. You should give a tenant plenty of notice and explain the reasons for the increase, which typically can be because of a rise in inflation, rise in the value of the property or demand.
4. Change the use of the building
If you want to change the class of a property you will need planning permission. However, from September 2020 the UK Class E, brought together a wide range of use cases under one. Office space has been combined with retail units, cafes, restaurants, and some leisure facilities providing more opportunities for commercial property landlords and owners. (It should be noted Scotland has a different property class system. You can read our handy guide here.)
5. Increase Occupancy
Of course, you want to keep your building as full of tenants as possible, and by implementing the first two ideas above you stand a good chance of attracting occupants. You can also look to optimise the space you have to increase the amount of rentable square footage.
Rentable square footage is the area of a building that determines a tenant’s rent. It includes leasable square footage and some common areas. Is it possible to redesign space? Could two small rooms in an office building be made into one larger space and accommodate more desks? Is there any part of the premises that is not finished and therefore unused? Could you convert part of an industrial site to offer storage space?
You should also consider how best to market the property to attract tenants. Consider high quality brochures displaying all that property has to offer, have large, clear signage on site and consider listing on a property portal. Which is of course where NovaLoca comes in. Our user-friendly commercial property listing service and technology solutions are designed to meet the specific needs of owners, developers, and agents.
