In the real estate business, there are three phases through which you will cycle: buyer, owner, and seller. Regarding market value, buyers understand that their purchase is an investment, but the return depends on what they do with the property. Owners should seek to increase their ROI with improvements to the property. Finally, sellers are ready to cash in – and they will, if and only if they make intelligent investments.
Structural, aesthetic, and functional improvements can add value that potential buyers will covet. Thus, renovating is one of the most impactful ways to get the most return on your real estate investment. Look into these five types of upgrades for your commercial property before selling.
Invest In New Commercial Roofing
According to Remodeling Magazine, a commercial roof replacement could bring an ROI of 61% or more. New roofing could make sense for your property if your current roof shows signs of severe damage. Buyers are more likely to pursue your property if they can look forward to a roofing lifespan of 15 to 80 years (depending on the type of roof). Additionally, a well-built commercial roof with new insulation can save significant cash on heating and cooling costs.
Upgrade Your Exterior
What do your customers first see when they arrive at your property? Whether you're looking to sell your real estate or run a business from it, an investment in your exterior goes a long way in creating positive first impressions. Improvements to your facility's outside can include landscaping and hardscaping, power washing, new signage, cleaning away debris and garbage, and undertaking parking lot maintenance. As the final option can be quite an ambitious task depending on what you're envisaging, it would be a good idea to read this complete guide to selecting a parking lot paving contractor, as professional assistance could prove to be of invaluable help.
Make Aesthetic Improvements
Don't just spruce up your exterior; take a good, hard look at your interior. Could the walls and ceilings use fresh paint? Are the windows and doors drafty and dirty? Does your furniture look like it came straight from the 1980s? Aesthetic improvements like updated furniture and décor, new flooring, and pleasant lighting are a facelift to your interior that customers and potential buyers will feel.
Go Green & Cut Expenses
Sustainability is all the rage these days, and it's for a good reason. A commercial property that boasts eco-friendly features, like energy-efficient light bulbs, solar panels, use of recycled materials for any new construction projects, and low-flow plumbing fixtures, certainly appeals to your customers and buyers on an ethical level. Not only that, but these environmentally friendly upgrades can reduce day-to-day expenses on electricity, water, heating, and cooling. Your green property could also qualify for tax incentives, depending on your state and municipality.
Add Features to Empty Spaces
If your property has any vacant space – acres of unused land or an empty warehouse – you're sitting on untapped cash flow potential. Evaluate your commercial property to see if you can transform the space into something more productive or attractive. What kinds of amenities would be most beneficial to your type of customer? For instance, you might add an extra parking lot, a daycare center or playground, a courtyard with walkable trails, etc.
In Conclusion, Think Strategically
Just as sellers should consider making renovations first to maximize profit, buyers should also view their purchase as an opportunity to invest further. Meanwhile, owners stand to see a considerable positive effect on business when property improvements appeal to both returning and prospective customers. Before you decide to move up in the world of real estate, think strategically about your options to augment your commercial property's market value.
