Regardless of how you want to venture into commercial properties, you’ll always look for a strong return on investment (ROI).
Moreover, most people will look into commercial real estate as a means to invest for capital gain. But since you’re looking for lasting tenants, you need to keep your business premises in pristine condition, prepared to take on all kinds of businesses.
With a touch of renovation, sanitation, and enough knowledge of suburb planning and regulations, you can exponentially increase your commercial property value.
Finding the right location for your commercial property will help you stay afloat in the present and for the long term.
That said, consider your type of commercial property and proximity to infrastructures and shopping districts. The closer you are to business centres and areas with higher foot traffic, the more you’ll attract blue-chip tenants and high-yield businesses.
Aside from existing infrastructures, you may also need to consider zoning changes in your suburb. That’s because commercial and manufacturing hubs can transform into residential hotspots in inner-city and outskirt suburbs due to gentrification and suburban developments.
Checking with your local council for possible zoning changes will help you stay ahead of most investors and secure your investment at the right price.
For instance, if you’ve bought a residential property in a suburb, a zoning change could attract families in the area, increasing the demand for child/aged care facilities.
If you’re not expecting this shift in demand, you may end up paying unexpected fees to acquire a development application (DA) to comply with standards for care centres.
Hence, we recommend seeking professional insights from urban planning consultants since they probably have access to the local council planning and engineering staff. That way, you’ll get reliable information about potential zoning changes in the future.
One way to leverage high foot traffic and maximise your tenants’ sales every day is by extending your property’s opening hours.
That would massively benefit cafes, restaurants, and clothing shops located in the suburbs near Sydney CBD. But you may need to present a reasonable community impact statement to your local council as it could extend noisy hours and traffic in the suburb.
If you’re considering this option, make sure to communicate with your tenants so you can speak with the local council as a united team to strengthen your application further.
Streamlining any residential or commercial development without getting the appropriate DA approval could lead to legal actions and costly fines.
Keep in mind that your local council is in charge of the appropriate zoning changes, so if you’re expanding without legal consent, you’ll run the risk of losing your investment.
That’s because conducting any renovation without legal support will raise insurance and liability concerns and won’t cover you with any financial insurance. If you ever decide to sell the property in the future, you may end up paying thousands of dollars for reparations.
Here are some instances where you need to file the proper approvals and legal permits:
Purchasing a commercial property in a highly competitive location means you need to stand out from the crowd to attract more leasees.
One way to do that is by establishing a strong first impression for walk-in clients and potential tenants.
Improve your first impressions by making your office space or commercial property functional and business-ready right at first glance. Keep in mind that this doesn’t necessarily increase your property’s final value, but it will help you win over interested tenants.
You can make any office space and business premises bigger, better, and cleaner with the right lighting solutions.
Consider using white light for your premises as it is usually best for offices and shops.
You can also save energy during the day by maximising natural light. Keep all blinds and window shutters wide open to let most of the natural light into your commercial space.
You’ll want your potential customers to be able to walk around your vacant unit and imagine how their business would look like and operate within the premises.
That said, it’s crucial to maintain a clean space when conducting on-site inspections with customers, just as you would in residential properties.
You should also remove any personal equipment and furniture left by the previous tenants to keep a strong first impression for your new clients, including:
Getting rid of all those can be a problem if the current leasee is still processing their end of tenancy, but coordinating with them in packing up as much as possible is important.
You don’t want to tour your clients on your premises and greet them with cracked walls and peeled paint. If you’re going to increase your property value and win over potential tenants, plaster those cracks and apply fresh paint to the walls.
Additionally, you can take a few steps further and replace old fixtures and tattered carpets to attract more tenants.
Your building’s structural integrity also plays a vital role in determining its property value. We recommend having a building inspector walk through your property so you’ll get professional consultation on keeping it structurally sound.
Our specialist mortgage brokers at Plan A Mortgage will help you discuss your options and determine whether you qualify for a commercial loan.
We’ll also help you find the best rates and get approved by the right lenders. Call us at 1300 052 055 or fill out our contact form today!