When homeowners get ready to sell their property, they often spruce it up to improve curb appeal to make the home more marketable.
Improvements vary widely and may not be right for every property. But here are five that might help yield the highest ROI on resale:
- Increase occupancy. This is probably the most important way to help increase value. A higher rent roll can make the property worth more.
- Update amenities. Having in-demand amenities such as a coffee shop, event space or walking trails may make an office building more desirable and improve the return on sale.
- Increase NOI. Since commercial properties are valued by their NOI, if you improve NOI, you may get a higher return on sale. Improving the project’s energy efficiency can reduce utility costs and improve NOI. You can also add additional revenue streams like valet trash.
- Improve curb appeal. A fresh coat of paint can yield a huge bang for the buck, as can new landscaping.
- Improve kitchens and baths. In multifamily properties, this will allow you to raise rents, which can increase the value on resale.
Owners of commercial real estate should make their properties more attractive to buyers. Implementing these five improvements will not only help your property sell faster but, potentially, at a higher price.