More people are realizing the potential in investing in commercial real estate. It has continued to be an attractive and lucrative business that is ever growing. If you are a business person who owns a commercial property, you need to keep up with the growing demand for small businesses that are ever increasing in the market. One way to ensure that you are well updated with the current commercial real estate trends is by working with a reputable company that specializes in managing leases, rent and sales of commercial property.
Working with such a company places your property on the top list of the hottest commercial real estate in Mississauga. A good commercial property owner always works towards increasing the cash flow by coming up with strategies before even investing in the commercial real estate. You should determine the potential of a property and be able to predict its future value. This article will outline a few tips on how you can add value to your property to get the best returns from your investment.
Invest in improving your property’s face value
How well you care for your commercial property determines your cash flow directly. You need to keep updating your building’s physical appearance to a more modern look to keep up with the ever-rising competition in the commercial real estate business. You should make cosmetic improvements like new paint, new décor, new carpeting and wallpaper every now and then to give the building a new look. This way, you are able to keep your loyal tenants while attracting new clients.
You can also make some substantial improvements to your commercial building to make it more accommodative. For example, you can renovate the lobby or even make a few structural changes. However, if you plan to sell your property in the future don’t make too many substantial improvements since the new owners may have their own ideas they would like to incorporate after acquiring the property.
Earn from your property based on rentable square footage
Most commercial properties charge their clients based on the usable square footage. This means tenants pay on the actual space they use and calculation is made from wall to wall and door to door. The landlord bears expenses to other common areas like the lobby, stores, restrooms, hallways and stairwells shared by renters.
When you charge a client based on rentable square footage, it means they usually take a complete unit and pay a set rent on it. You can avoid the loss you bear from usable square footage by turning multi-unit properties to individual properties where clients will not have to share spaces. They in turn pay for the whole unit including stairwells and hallways.
Add personality to your property
A commercial property is a place of business but that does not mean it has to be so formal. Come up with a good property name that defines the personality of your property. You can come up with creative ways to bring out the personality by coming up with unique landscape plans and exterior paint. Ask your realtor to talk to the renters and find out from them what they would need to make the property stand out.
You can designate a space for daycare for renters who have kids and need to carry them to work. Along with the daycare, you can have a kid’s swimming pool and playground which can be accessed by both the renters and buyers who visit your property. This is one way to market your property especially if it is a shopping center. You can also have a special meeting room designed with glass walls to be used by your renters when they need to hold important meeting.
Ensure your property is secure
At this age and era where terrorists are targeting places of business, security should be a priority to ensure that both renters and buyer are well secured. Install the latest CCTV cameras all around your property and hire the best security personnel in your area. Everyone wants to hang around where their safety is assured. Install detection walkthrough gates at the entrance to make sure no one walks in with dangerous weapons.
Go green to cut on expenses
You can cut on monthly utility bills on your commercial property by going green. This means that you use energy efficient materials and those that can be recycled easily. One way to cut on cost is by installing glass windows and ceilings to let in as much natural light as possible. This reduces the cost of lighting during day time.
Ensure that the whole building is installed with energy saving bulbs and fixtures. If your property has a kitchen, see to it that it has the latest energy efficient appliances. This is the small price you have to pay to add value to your property and in turn you get more revenue.