If you are a commercial investor or owner, you may want to take advantage of the current market conditions by adding value to existing lease properties. A core objective for most investors is to increase the return on their investment by adding value.
One of the most important factors affecting overall budget is rental income. If a property is not 100% leased, the first priority will likely be to fill any vacancies. If a property is fully leased, the opportunity may be available to replace poor performing tenants or tenants paying under-market rents. Most landlords in today’s competitive market look to professional real estate companies to handle this task.
Experienced brokers are constantly working to develop and maintain relationships and knowledge about the ever-changing market. Filling a property with credit-worthy and capable tenants is not always an easy undertaking. A broker will be able to help by focusing efforts on marketing the property to the best users, allowing Landlords to concentrate on growing their business.
Making physical changes to buildings or structures that enhance visual appeal and efficiency is another way to increase the value of a property. These improvements can be minor, for example, painting, parking lot repairs, or updating building signage or lighting. For older properties, major improvements may be necessary, such as updating the building façade, replacing storefronts, or resurfacing the parking lot. In some cases, there may even be opportunity to add Gross Leasable Area, thus increasing your revenue stream. Upgrading interior features can also have a positive effect on your overall value. Energy efficient building systems that have HVAC, lighting conservation, or water consumption measures not only save you money, but are also great features that entice prospective tenants.
Hiring a professional management company is yet another way to add value to a property. They will help owners by not only maintaining a property, but also by improving the operating performance in a way that maximizes profits. Professional management services will save owners time and trouble by handling the day to day needs and balancing the owner’s long term goals.
Using our expertise in the local market, The J. Beard Real Estate Company can greatly benefit investors of commercial lease properties. Whether your needs are simple or complex, our team of leasing, sales, and management professionals can help you extract the most value out of your property.
-Lindsey McKean
The J. Beard Real Estate Company
