In the real estate business, there are three phases through which you will cycle: buyer, owner, and seller. When it comes to 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 made smart investments along the way.
Structural, aesthetic, and functional improvements can add value that potential buyers will covet. Thus, one of the most impactful ways to get the most return on your real estate investment is to renovate. Look into these five types of upgrades for your commercial property before selling.
Invest In New Commercial Roofing
A commercial roof replacement could bring an ROI of 61% or more, according to Remodeling Magazine. New roofing could make sense for your property if your current roof shows severe damage signs. Buyers are more likely to pursue your property if they can look forward to 15 to 80 years (depending on the type of roof) of roofing lifespan. 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, parking lot maintenance, power washing, new signage, and cleaning away debris and garbage.
Make Aesthetic Improvements
Don't just spruce up your exterior, but take a good hard look at your interior as well. 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. Plus, your green property could qualify for tax incentives, depending on your state and municipality.
Add Features to Empty Spaces
If your property has any vacant space – be it 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 any spaces 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 centre or playground, a courtyard with walkable trails, etc.
