Member Insights by John Horner, Core Developments
Owning a commercial property can be a smart investment, but the swing of the real estate market can mean property values go up and down regularly. If you’re looking to add permanent value to business property, consider renovations. It can be as simple as painting a wall or as complex as building an addition, but everything you do for your commercial property not only enhances it for the current tenants but also adds resale value for when it’s time to sell.
Many commercial property owners think only of interior renovations, and those are important, but don’t overlook the power of quality landscaping. Not only does it increase curb appeal, but proper landscaping assists in irrigation, pest control, and can even keep your windows from fogging. Another exterior upgrade that adds value is visible and well-maintained signage. Not only does this increase property value, but it can draw in new customers who may not have noticed your building before.
Parking lots and walkways are also overlooked but can make a massive impact on the value of your property. Resurfacing a parking lot creates a smoother ride for clients and employees and reduces your future maintenance costs. Even re-striping a parking lot can improve the look and feel. Uneven walkways are tripping hazards and should be fixed immediately. It’s also a good idea to make sure your building is maintaining ADA compliance with proper ramps and handrails.
Fixing structural damage is critical to maintaining and raising property value. Some new paint and a few shrubs won’t hide a cracked foundation or a leaky roof. Outdated plumbing can leak, causing water damage and mold. Electrical wiring can fray, leaving you at risk for a fire. Structural upgrades will ensure your building is standing for decades to come and reduces the chances of flooding and fire. Both you and the next tenant will find your updates incredibly valuable.
If you’re on a budget or a tight timeline, consider small changes that make a big impact. One easy option is to replace existing light bulbs with energy-efficient LED lights. Incandescent bulbs emit 90% heat and 10% light. LEDs will save on electricity and cooling costs while providing better light for people to work by. Changing light fixtures, ceiling fans, and entryway sconces can dramatically improve the look and feel of a room or building. Installing smart-technology such as automatic thermostats or security systems can decrease heating and cooling costs and keep your business safer. Small changes can have a lasting influence on the value of your building, not to mention save you money up front.
The larger your investment in change, the higher your return. Adding square footage to a building is guaranteed to raise the value. Other significant renovations include replacing windows and doors for energy-efficient models and replacing dated carpeting or laminate for tile or engineered hardwood.
These renovations do more than add value to your business property. Cosmetic changes may allow you to raise rent prices for tenants while structural changes can lower your energy bills and reduce maintenance and repair costs. Whether it’s a simple upgrade like new lightbulbs or a major one like a building expansion, don’t hesitate to raise the value of your commercial property today to increase your investment for the future.