Steps to increase the value of commercial real estate

Written By Steps To Faculty Published August 4th, 2010

Commercial property can increase or decrease in value in a moment. If your business is well situated, then the dollar value of the property increases. On the other hand, poor locations tend to decrease the value. The state of the economy also determines the value of your commercial property. Given the dire state of real estate, particularly commercial real estate, many owners are seeking ways to increase the value of their property for higher sales. You can also increase the value of your commercial property by following these steps.

Step 1 Make Improvements to the Property

Make additional things e.g. new decor, new landscaping, new flooring or wall papers. Another factor is the significant rehabilitation that involves improvement in the structure. These changes add value and make the property more attractive.

Step 2 Increase Rent

You can also increase the value of real estate property by increasing the rent. By charging market value, tenants are forced to make changes to bring more customers to their stores. This in the long-run, increases the value of the property.

Step 3 Subdivide a large building into smaller units

If you have a very large property, then try to utilize in different business units. By doing so, you can add per unit value to the overall property as different customers will do business on the premises.

Step 4 Change the Property’s Intended Usage

The value of a commercial real estate property is also increased if it is used for right purpose. For example if someone is having an old warehouse at the center of town can turn it into a hotel, which adds value to the property.

Step 5 Add services

Another way is to provide value enhancing amenities that may include adding free wireless Internet for your retail tenants or something like creating a playground. These finishing touches immediate increase property value.

Remember, despite the current decrease in property values, these touches can restore the value of your commercial property. Please visit stepsto.com for more great business advice.


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