When it comes to real estate investments, retail properties are among the most profitable types of assets to own. Worth $951 billion in 2020, the commercial real estate industry provides investors with an opportunity to derive decent returns from their investments. However, in order to enjoy significant long-term benefits, a retail property owner must make sure that the asset maintains its value and if possible even increase it. So, how can you go about retaining your retail property value? Here are seven action steps you can take.
1. Have a real estate professional assess the property
Invite a real estate professional such as a property manager to give your retail property a thorough inspection. For a nominal fee, receive an expert assessment of your asset and advice on improvements that can be made to retain value or possibly augment it.
2. Renovate your property to make it more competitive
A refurbishment can give your property a new lease on life and help to maintain its overall value. Installation of high-tech security systems, repainting the interior, and changing sanitary ware in restrooms are upgrades that can make a world of difference.
3. Improve efficiency by getting the property LEED certified
Investing in LEED certification is a sure-fire way of retaining your retail property value. Today’s modern infrastructure is encouraged to adopt greener measures that promote energy efficiency. Getting certified works in your favor too as LEED-certified properties have on average 20% higher occupation rates.
4. Schedule routine maintenance and repairs
When it comes to retaining your retail property value routine maintenance cannot be overlooked. Properties deteriorate faster when small issues are neglected. By scheduling routine maintenance, problems can be identified and resolved before they escalate into bigger and potentially more costly repairs.
5. Outsource spring cleaning needs to professional cleaners
Most homeowners give their homes a good spring cleaning once in a while. Retail properties can also benefit from a thorough scrub down and polishing. Once every three to four months, hire a team of professional cleaners to deep clean the building. Difficult-to-reach places and exterior windows are prime examples of what needs to be cleaned.
6. Ensure the landscape around your asset is well-maintained
First impressions count. If you’re looking to attract and secure long-term lease contracts with clients it pays to have a neat and well-manicured landscape. No matter how great the location, if the yard on which the property sits is unkempt and the building is in a sorry state of disrepair clients may be reluctant to do business with you for one simple reason: The property does not represent their brand well.
7. Invest in features that increase tenant safety
Security cameras should be a given when it comes to contemporary buildings. By making safety a top priority and investing in elements that build client confidence, you’re inadvertently making your property an attractive place to do business. Extra lighting, removal of tripping hazards, adding more CCTV, and fire deterrents are examples of things you could do to retain property value.
Discuss more ways to retain property value with a property expert
Here at Longmont Property Management Inc., we understand the importance of maintaining standards. We’re an award-winning team of property managers offering full property solutions. Our experience in managing retail properties is second-to-none. Our teams would be happy to discuss retaining your retail property value in greater depth.
Contact our PMI Colorado Front Range advisors today.