Commercial real estate valuation is a different process than calculating the market value of a residential home. While factors such as the property’s location and features do come into play, potential buyers will be more focused on the building's revenue history and potential for growth. If you’re planning on listing commercial property for sale, below are four ways to increase the value of your investment.

A Guide to Enhancing Your Commercial Real Estate

Invest in Improvements

Improvements can be as simple as replacing design elements in the building’s common areas or as ambitious as renovating the exterior of your office building. When planning any changes, focus on those elements that will make your property more desirable to future tenants; this will, in turn, increase your cash flow and the market value of the entire property.

Increase Revenues

As current tenant leases expire, you can review what the market is seeing for rental rates and adjust rates in a renewal or for a new tenant. While you shouldn’t charge substantially more than market prices, a reasonable rent increase can be a simple way to enhance revenues, especially if the property has recently been updated. Speak with a commercial real estate expert who can review your rent prices compared to similar properties in your area and help set the price for success.

Reduce Operating Expenses

In addition to maximizing income, lowering the operating cost of the building will enhance the property’s cash flow. Improve the efficiency of your back office. Invest in energy efficient appliances and bulbs, including motion-sensing technology. Such steps can reduce expenses without impacting the satisfaction of your tenants. Talk with a property manager in your area to understand if your expenses are inline with similar type properties.

Repurpose the Property

While completely changing the intended use of a building does require significant capital investment, it can be one of your most profitable long-term renovation projects. For instance, old factories or even churches contain unique architectural elements that can attract luxury retail or office tenants.

For half a century, commercial real estate owners throughout the Lincoln, NE, area have relied on NAI FMA Realty for dedicated service and unparalleled local market expertise. They are the only firm in the area that produces a comprehensive market report, allowing you to make decisions based on precise information and current trends. Visit their website for more on their services, get news and updates on Twitter, or call (402) 441-5800 to speak to an expert today.