When you’re thinking about increasing the value of your commercial property in Sydney, there are four most popular ways that can help you reach your goal.
The first involves improvement of the investment property itself. The second is based on increasing its returns. The third involves adding amenities and the fourth is when you change your property’s function.
While commercial properties in New South Wales are generally seen as longer-term investments than residential properties, industrial and retail premises can often be snapped up and flipped by local investors who see the potential for adding value.
Whether you intend to hang on to the property in the long or short term, it’s worth maximising its value in as many ways as you can.
Let’s look into the mentioned above ways of increasing a commercial property’s value in Sydney in more detail.
1. Improve The Property
If you’re buying a property, have a look at unattractive, run-down premises often overlooked by other buyers.
If it has a short lease contract, the existing tenants can stay while you renovate. Then you can renegotiate the improved property on a longer lease with higher rent.
If you’ve owned your property for a while, you can still renovate and increase its sale value. Minor renovations include improvement of heating and cooling systems, floor coverings, paintwork and landscaping.
Structural improvements are expensive and more disruptive for your tenants but have the potential to increase the value and look of your premises significantly.
If you offer a fresh, contemporary and flexible business or industrial space, you are likely to appeal to better quality tenants and be in a position to negotiate a favourable lease.
2. Boost Your Property Returns
You need to know equivalent market rentals for your type of property before you can increase the rent.
Remember, you want your rent to be competitive – if you go too high, you price yourself out of the market in your area.
When buying a commercial real estate, consider looking for properties with an obviously low rent. This means you get an instant in property value by simply bringing it into line with current market rents.
3. Add Amenities to The Property
There are all sorts of ways to improve the amenity of your commercial investment.
Look for digital ways to enhance your property, such as offering free Wi-Fi to retail tenants or installing a digital security system.
Add a small plazground, seating and courtyard to a group of retail units, or even something like a childcare centre in larger developments.
4. Change The Property’s Usage
Wise commercial investors are always on the lookout for rezoning opportunities.
If you are the owner of an old warehouse in a popular area, you have the perfect opportunity to turn it into a rustic restaurant, shop or industrial style office. This will give your property an instant boost in value.
Improved cash flow and higher occupancy rate can make a big difference to your bottom line, also increasing the market value of your commercial property.
Before proceeding with any renovations contact commercial property valuation specialists from IP Valuations in Sydney.
We will assess your property and advise you on any improvements you would like to make to boost the value of your investment.
CONTENT SOURCE : House Valuation Sydney