5 Ways to Increase Your Commercial Property Value
According to a report conducted by Savills, the commercial real estate market is a continually thriving and booming industry with approximately a three year rolling average of £59.8bn. For many, buying a commercial real estate is a great way to earn money on the side as you can let it out to businesses. This can be in the form of offices, retail spaces, restaurants, bars and cafes. When buying commercial real estate, there are a range of factors that you need to consider that will make it appealing for others to buy, from aesthetic to practical. For example, does the commercial property have plenty of natural light, is it open plan, and how many facilities like bathrooms can it offer?
We highly suggest that, when you first buy the space, you invest some time and money into making it appealing for other businesses to buy. The initial investment that you make can create a profit that surpasses all expectations, so it is vital that you take the time to consider what to improve. As a leading chartered surveyor in Scotland, we have valued a range of services for commercial properties and business owners, so we may know a thing or two about how you can maximise your profits in the long run.
Purchase a space in a thriving city or financial district
According to the same report from Savills, a market trend in 2019 for commercial real estate was buying commercial property within a thriving city and financial district. This may not initially seem surprising, as cities are ubiquitous with economic success and booming businesses. Therefore, it may seem obvious to buy a commercial space in an up and coming area or in the centre of a city. However, the fact that these can be, at times, quite expensive is a deterrent.
But you cannot deny that this region would be an attractive place to rent for either a major brand or a successful business. As financial districts and cities are associated with success, this in turn will psychologically make a business owner want to rent there as their business too will look successful to clients. With this in mind, you can offer the space for more money.
What’s more, in cities and financial districts, it is a hubbub for technological advancements - meaning better phone and wifi connections. And, as many businesses now use technology as a lifeblood, it is important that they choose a space that allows for this to thrive.
Cities and financial districts also have other perks that make it attractive to potential businesses. For example, one of these is good public transport connections, as this allows for employees from all over the city to travel there. Plus, buying in a financial district that is commuter and employee heavy establishes a form of community - something that will be attractive to other businesses.
Beautify the Building
A beautiful aesthetic building and space will certainly attract business owners of all tastes. When you are first looking at commercial real estate, choose one that has aesthetic potential - such as a property with plenty of natural light, period features, high ceilings and an open plan space, as this allows you to work with it.
There are many cost-effective ways you can beautify the building and thus increase its value for businesses to rent or for future resale. For instance, investing in either a fresh carpet or wood treatment, giving the walls a lick of paint, and installing statement and trendy lighting fixtures. These additions can enhance the buildings features and make it look like a clean and cool space to work.
There are more unusual steps you can take to give your office space something extra, yet these are specific to what kind of business you are trying to target. For example, for a creative agency, they will want their office space to reflect their down to earth and original vibes. With this in mind, why not go to the effort of painting one of the walls with chalkboard paint, or installing a unique water feature and outdoor space (if there is one available).
Put employee productivity and happiness at the heart
Enhancing the aesthetics of your commercial space won’t just affect the monetary and physical value of your property, but it will also make the employees happier to work there.
More and more businesses are putting their employees, rather than their customers and clients, first. Therefore, to keep employee satisfaction levels at great rates, they want to make sure they are happy in the workplace. This is because productivity and happiness are intrinsically linked, and what business wouldn’t want their environment to be productive? Tap into this as a commercial real estate buyer or developer and consider what employees would want as well as the business owner.
For example, many employees want to be able to feel comfortable and relaxed within the workplace, so when considering renovations, make it a priority to install a top of the range kitchenette and a space for a lunch room. Showing that you have done this already is attractive to potential buyers and renters as it means they don’t have to in the future.
Build meeting rooms
One of the best ways to attract corporate businesses and also increase the value of your commercial real estate is to build meeting rooms. This can be done through temporary partitions or simply by getting permanent walls built in an office. Meeting rooms are essential for businesses that interact with plenty of clients and also for businesses that want to hold meetings with staff. This is because, having a professional and well-designed meeting room will reflect well on the business.
Similarly to installing an onsite kitchenette or common room, having this already in place will be attractive to potential renters and buyers.
Install air conditioning and heating
Like selling or renting domestic property, it is vital that your commercial property has well-maintained and newer appliances of air conditioning and heating. Simply put, no one wants to be doing work and feeling like they are either on the surface of the sun or in the deepest depths of Antarctica.
Not having air conditioning and central heating can affect the employees general comfort and result in a loss of productivity overall. What’s more, businesses may be reluctant to have to solve air conditioning and central heating issues themselves as they fear both cost and disruption to the workplace.
A simple way to solve this is to have air conditioning and heating units installed before you put the property on the market. Not only will this make you seem like a trustworthy and efficient landlord, but also, it can help increase your commercial property value.
First and foremost, before you make any changes to your commercial property, call one of us at Shepherd Chartered Surveyors. We can help assess the structural load of the property, before any changes are made, and also help you estimate how much the value of the property will be after the changes.
Our team of trusted and highly-trained building surveyors can instruct you on any repairs that need to be made, as well as possible structural and cosmetic damage that requires attention. Not only will this help increase the value of your commercial property, but it will make it safer too.
Alongside our commercial property valuation services, we also can provide a variety of other commercial property services such as, helping you with your acquisitions and disposals, providing high quality project consultancy, multi-disciplinary asset management, and accurate energy performance certificates. To find out more about our services, or if you would like to speak with a commercial building inspector, simply contact your local branch today.