Last year, the total volume dollar amount of commercial real estate (CRE) transactions was $1.14 trillion. If you own a commercial building, it's crucial to understand how to maximize your investment. And yet, that's easier said than done.
Where do you start if you want to make the most of your property in Parker, CO? For starters, you should utilize these strategies meant to help commercial property owners.
Make Improvements and Perform Renovations
Proper building upkeep is vital if you want to get the most out of your asset. It allows you to increase commercial rent, as business owners are more likely to pay for a comfortable and convenient space.
However, it's also important to understand the difference between what would be nice to have and what you must do to keep the building in good shape.
Make a list of any improvements you'd like to make. Address any structural issues first, such as a leaky roof or structural rehabilitation. This will help you keep commercial property expenses down, such as high utility bills.
Maximize the space and consider splitting the building into different sections. Make sure to research zoning laws first.
If you'd like to make cosmetic changes but don't have much money, focus on adding a fresh coat of paint or landscaping around the building. Replace old and worn flooring in common areas or add new furniture to the lobby.
Understand the Market
You have an incredible asset in a prime location, but what type of business is the most in demand in the area? What's the going lease for other similar properties in the neighborhood?
Understanding local demand and keeping your rent within a competitive but profitable rate will help you increase your commercial property value.
Find out if the neighborhood is lacking anything and if there is a high demand for a particular business. For instance, co-working spaces are very popular right now, comprising 1.67% of total office space in the United States. You could designate part of your building as a co-working space to take advantage of this rising trend.
Avoid Vacancies With Tenant Management
You want to avoid vacancies as empty space isn't bringing you any income, but how do you do it?
Tenant management makes the process easy. A commercial tenant management company handles the leasing process, coordinates repair services, and even handles commercial rent collection.
When you have a professional team on your side, finding the perfect tenant and avoiding vacancies becomes simple. They know how to advertise when there is an empty space, how to negotiate the lease, and how to manage concerns to foster solid tenant relationships.
Having happy tenants in place means less work for you and a boosted stream of income.
Use These Tips for Commercial Property Owners
Your commercial property can be one of your most valuable assets, as long as you know how to maximize its potential. Use these strategies to get started.
Here at PMI Parker, we specialize in building value through services such as tenant management, property maintenance, and more. Learn more about how we help commercial property owners and get in touch with us today.