Commercial real estate is always a great investment decision to venture into. You can have a background and balanced portfolio, or you can be a total amateur who’s trying their luck and skill.
Either way, added profit and greater ROI is what every investor should be aspiring for. A great way to increase your chances is through a variety of techniques.
Adding Value to Your Commercial Real Estate
If you’ve made the decision to invest in, or have already invested in CRE, you can make your investment worth your while.
1. Increase the size
Expand your property size through additional construction or addition of spaces. If you’re opting for commercial real estate in Macomb, consult with local authorities or get the agents at our firm to do it for you. You can find out about your restrictions and permissions and how much space you’re allowed to use. You don’t want to take on this impulsively and end up paying fines and penalties or having operations shut down.
2. Increase rentable footage
This is different from expanding the actual size of your property. This is a tactic that allows you to make better use of the space you already possess. Suppose your multi-family unit has several apartments that are empty because their construction is incomplete or the plumbing is a mess. Or you have empty rooms that could be converted into office spaces or used for meetings.
By not making efficient use of your available space, you’re losing out on money. Adding value doesn’t need to be external—you can add value and monetize what you already have!
3. Improve upon the property itself
Is your building dreary to look at? Is the paint peeling off? Are your interiors outdated, but lack that vintage charm? Often a building’s decrepit condition is the main factor that lowers its value.
Why would tenants want to live in a building that looks like something out of a horror film, or retail stores set up in a place that’ll drive their customers away? A paint job, landscaping and interior décor can make all the difference to property value.
4. Add amenities
If possible, adding amenities like a pool in a residential complex, or fitness center, or high-end conference rooms and a cafeteria/restaurant to an office building are all ways of adding amenities that will boost your property value by a mile!
5. Offer parking
Basement or covered parking, or a safe and secure parking lot for tenants and residents to use is another clever and practical way to add value to your CRE. It shows your consideration for tenants who’ll need a parking space in what is a residential or workspace for them.