How to maximize the value of your commercial real estate investments is a pretty simple concept but I think it’s important one to go over because not everybody is focused on this.
Frankly, there are two real ways that you can maximize your property value. One is by increasing the income that exists at the property. The other is by decreasing the expenses.
Now most people are pretty familiar with how to increase the income derived from their property. There’s a host of ways to do this. You can enhance the presentation and drive rents up. You can make investments into your property. You can get better tenants. You can extend leases you can put solar panels on the roof of your property. You could sell billboard space on the roof of your property if you’re adjacent to a highway. You could rent space on your roof to a cell phone tower company. There are literally so many creative ways that you can figure out how to maximize income at your property.
From my experience, most property owners focus most of their attention on revenue, but not enough on how to mitigate their expenses, such as reducing the cost of utilities, insurance, maintenance costs, and property management. By drilling down on these expenses and getting these costs to an absolute minimum, you will invariably improve the efficiency of running. In so doing, you will have the needed resources required to maintain your property so your most demanding tenants are happy and want to stay and your most attractive prospective tenants want to move in.
If you get real creative on maximizing your income, and if you just take the time to really focus on minimizing your expenses, you can increase the value of your investment property.
Should you have any questions about this article – or any commercial real estate matter – please feel free to contact me at [email protected] or call me at 508-635-6786.