What Adds Value To My Property?
There are three major factors that determine the monetary value of any commercial property to a potential investor or renter; facilities, maintenance, and location. Improvement of any of these three will add value to the property.
Of these three, location is by far the most important and also the most difficult to control. Facilities are largely determined by the capital expenditure at the time of construction, but they can be renovated and restructured. Maintenance will be the easiest for the average commercial property owner to influence and has a direct relationship to the profit from the the location. A well-maintained property can command much higher sums in rent or sale then a property that is falling down.
The location of the property determines its value. Commercial real estate will generally find its rental or sale price to be determined by the precise area in which it is located and the traffic in that region. Improving the neighborhood, attracting other similar businesses, improving public transportation, improving parking, and gradually encouraging the local regulatory agencies to recognize good work with greater responsibility are all excellent long-term ways to add value to a commercial structure.
The specific type of commercial facility established on that location will determine the sorts of customers and their relative financial disposition, which will all be appropriate to the local business community and economic structure. Remodeling, renovating or adding to the structure will demand large expenditures of money and time, but they can transform the value of the building.
Maintenance will be almost completely within the purview of the property owner. A well-maintained property will be much more attractive to potential renters. They will be more pleased with their commercial location, as prompt maintenance is one of the main things that tenants want from landlords, and their happiness will translate to higher value in the business location. Proper upkeep translates directly to greater value.
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