As any canny investor will tell you, leasing out commercial property can be a lucrative way to make money. But, it’s not as simple as buying somewhere and renting it out straight away. There are several things you need to think about if you want to maximise your returns.
With this in mind, we’re going to go through a few ideas about how you can prepare your commercial property to the highest standards. Let’s get started with some of the basics.
Evaluate the costs
We’ll assume that you have performed due diligence on the property before buying it – if you haven’t, there could be trouble ahead. So, you will already have an idea of how much it is likely to cost to bring it up to scratch with regards to safety standards. Bare in mind that these regulations are only a bare minimum, and you will need to invest a little more in making the place look appealing to businesses. Work out how much you have to spend, and then look at the typical market rates for renting commercial property. If you can make the two sides of the equation add up and still turn a profit, you can get started.
Power and facilities
Your first step is to make sure that any wiring or plumbing in the building is up to scratch. You will need an industrial electrician or a plumber with commercial property experience to sign off any work. Consider how many businesses will be using the space, and think about how many facilities you will need, such as bathrooms or kitchen areas. Make sure that every room has enough power points for a business to run effectively.
Once you have all your cables and pipes in place, you can start the decorating process. Neutral colours are always best for business, as you are appealing to a very mainstream audience. Make your offices look clean and welcoming. Also, consider a reception area if there are going to be more than one business working in your property.
Don’t forget about the impact of the outside space of your commercial property. No matter how shiny, bright or new it looks on the inside; a poor external appearance will make people run a mile. You need to think about car parking, too, especially if you are in an out-of -town location.
Offer the right terms
Pitching your property to businesses can be tricky to master. You will need to consider all other business premises in the area, and have an idea of what they charge. You can go for more money, of course, but you will need the facilities to justify the extra costs. Overprice your space, and it can be an incredibly expensive mistake. Your best bet is to match other businesses in your location first, and then work towards providing a better service over time. This way, you should ensure a full house right from the start, and be able to form tenant-led ideas of how you can make improvements.