The real estate business is a great income generator for individuals and businesses. If your company owns commercial property but wants to sell it, don’t just list the property immediately. Improve your commercial property for resale value so you can get as much money as possible out of the sale. Keep reading for some helpful how-to tips for property improvement.
Add Amenity Space
There are various types of commercial properties, from apartment buildings to office spaces and industrial warehouses. No matter what type of property you have and want to sell, you can add amenity space that could help increase the property’s overall value.
In commercially run living spaces, such as apartments, some ideal amenities include laundry rooms, fitness centers, and business centers. These additions improve the quality of life for building residents, which means you or whoever you sell the building to can charge more for rent. These amenities also increase the value of the property for potential buyers.
Ideal amenities for working and industrial spaces include things like parking lots and break areas. Businesses typically want to rent properties that already have these amenities, so a potential property buyer won’t have to worry about finding tenants as long as your commercial property already offers these spaces.
Make Necessary Upgrades
Property value can increase when you upgrade various components. When the property is neat and welcoming—regardless of its purpose—it’s usually worth more than a comparable property that is in disrepair. Improvements that aren’t immediately visible but help the property function better also increase the building’s value.
Necessary improvements can include everything from internal to external renovations. Internal renovations should modernize the space so that the buyer has a turnkey experience after closing the sale. External renovations should make the property more attractive; for example, improving landscaping and removing old concrete slabs can help a property look its best. You should hire professionals for concrete removal and landscaping since professionals have more experience and better equipment.
Improvements that are necessary but not exactly visible can include everything from updating HVAC systems to replacing light bulbs with eco-friendlier options. Potential buyers won’t notice these improvements right away, but knowing they won’t have to make these changes and that the property is energy efficient will help them see the increase in your property’s value.
Renegotiate for Long-Term Leases
Long-term leases are more attractive to potential buyers than short-term leases because they ensure that the tenants will remain even after the property is sold. Speak with your current tenants and offer them long-term leases in exchange for property benefits, such as the new amenities or improvements mentioned above. Once the tenants sign the new leases and you finish improving your commercial property to increase its resale value, you can sell the property with those attractive long-term leases in place.
When your business decides it’s time to sell a commercial property, take the steps necessary to improve its resale value first. These improvements will create more work for you in the short term, but you’ll receive more money at sale time, making it all worthwhile.