One of the key things about owning commercial property is doing things to increase property value. Though the value of a commercial development or individual property can have a lot to do with market conditions outside the owner’s control, there are many things you can do to to increase property value.
Sometimes you don’t have to do a lot with your property to see an increase in value. When the economy is doing well and employment is high, commercial properties tend to be in demand, both because companies are doing well and looking for new or additional space and because people are looking for investments. For example, in the first quarter of 2015, investment sales of commercial properties rose 11% compared with the previous year.
You can’t always count on a strong economy to boost the value of your commercial property. In some cases, you might be forced to sell in a down market, so it will be worth it if you have done everything you can to increase property value.
One of the ways to increase property value is to get a zoning designation is the most advantageous. Having a zoning designation that is more permissive than what you need for your business use gives you flexibility if you decide to sell. If another business can buy your building and put in a more intense use, it can make it more valuable.
Another way to increase the property value of your commercial building is to keep it in good shape. That means doing all maintenance and repairs for which you are responsible and making sure your tenants keep up with maintenance and repairs that they are supposed to make. If you don’t have the time to keep track of what is going on at your building, hiring a commercial property management company can be a good idea.
Doing maintenance and repairs is the minimum you need to do to keep up your property value. To truly help boost your property value it’s important to modernize your building. Upgrading plumbing, electrical and HVAC systems to improve energy efficiency and better handle modern equipment will help your building retain value. Also, keeping up with things such as telecommunications infrastructure can help make your building more valuable.
Doing these things will help you increase your commercial property values and ensure you make a profit when you sell. Read more.