The commercial real estate market in Canada has experienced an increasing trend since its decline during the financial crisis. According to Colliers Canada, overall vacancy rates have dropped to 9.8% from 10.3% three months ago. Commercial real estate is a lucrative investment for those that have all of their available units rented out. Maintaining a high commercial property value is essential to those seeking a high return on investment. By taking some straightforward measures, you ensure your property is attractive to potential investors when it’s time to sell.
Keep Tenants Satisfied
Maintaining a professional relationship with your tenants is the key to making your commercial investment worthwhile—they are your source of cash flow, after all. To prevent dealing with difficult tenants, it’s recommended to employ a rigorous screening process. This should include a background check, references, and a good understanding of a tenant’s business. Show tenants you care by maintaining a consistent level of communication. In doing so, you will develop a strong professional relationship, which is beneficial if you experience building difficulties in the future.
Prioritize Building Safety
Building safety is highly important in keeping quality tenants and maintaining a high property value. Your building is where your tenants are most likely conducting their business, which stresses the importance of creating an environment where they feel secure. Basic measures you can take include installing security cameras and strong locks on doors and windows. Another way to make sure your space is fully protected is to hire a security guard. A security guard can be present during work hours or after work hours, depending on which you think is most important. Having their presence discourages potential thieves and shows that you take building safety seriously.
Invest in Upgrades
Continuing to upgrade your commercial building is important if you don’t want to end up with an outdated property after several years. When conducting upgrades, try to first tackle the big-ticket items. This includes structural issues in addition to roofs, plumbing, and windows. These are the first items a potential buyer will look at, so making sure they are upgraded shows that your building is well maintained. Another upgrade many commercial investors are looking into is energy efficiency. This is particularly popular with commercial investors who are interested in office spaces.
Many certifications exist, but a popular one is known as Leadership in Energy and Environmental Design (LEED). This certification is conducted by a third party and is recognized as a symbol of sustainability achievement. It’s attractive to potential investors because, in most cases, the environmentally sustainable aspects of the building also provide cost savings.
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