If your commercial property has become tired or neglected, you can bring it up to standard and attract a premium price.
Your business premises need to be as appealing as possible to employees. Most companies take employee wellbeing seriously and expect a high standard of tenancy to be supplied.
So whether you plan to sell or need to ensure you have gold standard tenants, these property refreshes will help.
Our 8 ideas on increasing value for commercial property
1. Zoning changes
Your property might be limited by its zoning so check out the opportunities that a rezoning might afford you. It isn’t uncommon to find warehouse space converted to offices, small-scale retail or even residential.
Location is important when it comes to commercial property. In Mount Gambier, with new precincts being developed, your commercial property might be in line for a zoning change so you can extract more value from your commercial asset.
Look to demographic shifts for possibilities like a gym, a child care centre or a community centre. Before you do anything, talk to us at Herbert Commercial.
2. Landscaping and exterior refresh
Tenants or buyers of commercial property generally aren’t looking for a fixer-upper. Buyers mostly look for a well-presented property and quality tenants on a long lease. If your property is one of many, it needs to stand out. So have the exterior painted or cleaned, have some landscaping done to the grounds and ensure any former tenancy signage is covered or removed.
3. Spotless, well-maintained interiors
We know that most users of commercial space will fit out the space to their taste and requirements. However, they aren’t looking just for a blank canvas; they want a space that looks clean, well maintained and that has good access and services.
Make sure that all remnants of the previous tenant are removed. While they’re trying to imagine their business or services operating from the space, buyers or potential tenants don’t need further barriers created by what clean-up work they’d need to do first.
It is important to ensure the space is clear and the floors have been vacuumed, mopped or steam cleaned. Windows need to be clean, dust and loose particles removed and obsolete cables or pipework removed.
Natural light is a big plus for commercial space. Investigate light wells, lighting tubes or skylights for darker areas of your office, retail or warehouse space. Changing conventional fluorescent tube lighting to LED lighting adds immediate value. Better lighting throughout will ensure the space looks cleaner and larger.
Light is great but you want to ensure that any windows or openings facing north or west have eaves, an overhang or exterior shutters to mitigate harsh summer sun while allowing sun to penetrate during winter months.
6. Paint and repairs
New paint, clean-looking plaster and new flooring show you care about your buyer or new tenants. Fresh paint and new commercial carpeting can be a small cost that can result in a higher yield return on investment by achieving a higher rent.
7. Building and pest inspection
Even if you aren’t selling, it’s wise to get a building report to ensure your commercial property is still structurally sound. It will give you, your potential buyers and tenants an evidence-based understanding of the qualities of the building. Importantly, your building report can flag any minor issues you should attend to before they become major problems.
8. Tenanting your commercial asset
This applies to owners who are considering selling their commercial property. Leased properties attract more quality buyers who aim to achieve a percentage return on investment that is greater than the cost of borrowing funds from a financier.
Can we help add value to your Mount Gambier commercial property?
At Herbert Commercial, our expert team can help with adding value by seeking tenants and assisting with tenant negotiations to maximise the marketing and sale of your property.
Call us today on 08 87 250 500 for industry-relevant, professional appraisal services to assist in determining market value for your commercial property sale.