There's no shortage of financial opportunity from investing in commercial real estate, generating over $1 trillion in revenue each year according to a recent study. When navigated appropriately, buying a commercial property can be a lucrative endeavor.
However, focusing on your building's valuation is essential to maximizing your ROI. The good news is that improving commercial property valuation is easier than many anticipate. Let's explore key tips about investment valuation you should keep in mind when moving forward.
Make Key Upgrades
Key upgrades can significantly increase the value of a commercial property. Focus on areas that will have the most impact, such as the lobby and bathrooms.
Modernizing these areas and investing in new technology like smart building systems can enhance property value. These improvements make the property more attractive to tenants, leading to higher occupancy rates and better returns.
Boost Energy Efficiency
Improving energy efficiency is a smart way to increase your property's value. Energy-efficient buildings attract tenants by lowering utility costs and supporting sustainability goals.
Consider upgrading insulation and replacing outdated HVAC systems. These changes reduce operating costs and appeal to environmentally conscious businesses, and some upgrades may also offer tax write-offs.
It's worth noting that focusing on these renovations can make it easier to find tenants, as well. Business owners understand that many of their customers likely prioritize companies with energy-efficient facilities, so they'll be searching for attributes like these when looking for commercial real estate.
Improve Curb Appeal
First impressions matter in commercial real estate. Enhancing curb appeal can attract more tenants and increase market value. Simple changes can make a significant difference. Common ones include:
- Fresh landscaping
- New signage
- A well-maintained exterior
These help attract high-quality tenants willing to pay a premium, which is crucial for property assessment and valuation methods. The last thing you want is to be unable to find tenants who can meet your financial requirements.
Maximize Usable Space
Maximizing usable space is key to increasing property value. Reconfiguring layouts to create more rentable areas can boost rental income and appeal to a wider range of businesses. Open floor plans and flexible workspaces that cater to modern business needs make a property more versatile, which is vital for a reliable property assessment.
Keep up with Maintenance
Regular maintenance is essential for preserving and increasing property value. A well-maintained property looks better and functions more efficiently, reducing repair costs over time.
Routine checks and prompt repairs prevent small issues from becoming costly problems. Consistent maintenance demonstrates a commitment to quality, making the property more attractive to tenants.
Never Neglect Commercial Property Valuation
By prioritizing commercial property valuation, you'll likely experience an exponential return on your investment. From here, you can allocate money to other pursuits and take your passive income to the next level.
PMI Flatirons Group offers comprehensive property management services, including a 21-day leasing guarantee and a $2,000 eviction protection in Boulder, CO. With over 20 years of experience, our team can help you effectively maximize your property's ROI.
You'll learn more about how we can help you when you get in touch with us.
