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Making small investments in a commercial property is always considered lucrative and profitable. These not only increase the cash flow and reduce the owner’s expenses in the long term, these also eventually help increase the property’s equity and value.
The value of a commercial property can be increased in a number of ways. Structural and cosmetic changes can be the first steps in that direction. Creating new office space, or utilising an unused portion to build new shops, warehouses, conference rooms or workplaces can be a great idea. If the property has a larger floor space, it can be leased out to more than one client, thereby maximising profits.
Renovations also play a vital role in increasing the value of a commercial property. While a simple trick can be painting the exterior and interior of an old building, owners may also think about completing unfinished areas in the vicinity. Upgrading the landscaping, replacing floor tiles with new ones or covering them up with carpets can go a long way in enhancing its look and feel. If it is an office building, the lobby and its exteriors can be decked up in new colours, designs and patterns. These not only make the property attractive, but also create earning opportunities.
The modern commercial space must be technologically equipped. Accordingly, if you can install internet connectivity, CCTV cameras in strategic areas, central air-conditioning facilities and energy efficient systems, the property will automatically be more valuable than other similar properties in the area.
Besides, employing a reliable property management company and round-the-clock security will add reliability to the building, and tenants are often willing to pay more for such conveniences.
Once the necessary changes are made, the owner can think about increasing the rents as well. Thus, slight alterations to an existing commercial space play a huge role in increasing its value and maximising the owner’s earning opportunities.
* Structural changes increase the value of commercial property
* Upgrade the unit by putting CCTV cameras in strategic areas
* Hire a property management company and 24-hour security
Source: Shabnam Mondal, Special to Properties
The writer is a freelancer