7 Great Tips to Renovate a Commercial Property (& Why You Should)
November 25, 2024
Buying and owning a commercial property can always be a great investment, no matter whether it’s actually the base of your business. It offers the ability to bring in quite a bit of rental income during a year. For that to happen, though, the property needs to be fit for purpose.
That could mean renovations are needed. Trying to renovate a commercial property can often be complicated, and it’ll take a decent bit of time and effort.
You could struggle with figuring out what you should do and where you should focus on. By using a few tips, however, you could make it easier for itself. Some of these could be a lot more practical and effective than you’d think.
Not only will they help you get through the renovations better, but they’ll have a larger impact on the property itself. You could end up generating a higher income from it.
Key Takeaways on Renovating a Commercial Property
- Increased Appeal to Tenants: Renovating a commercial property makes it more attractive to potential renters. By enhancing the property’s aesthetics and functionality, you can attract more tenants willing to pay higher rental prices.
- Higher Rental Income: Renovations often allow you to charge a premium rental price. A well-renovated property reflects value, and tenants are generally willing to pay more for upgraded features and improved conditions.
- Enhances Property Functionality: Renovations increase the overall functionality of the space. Improving space efficiency and adding amenities ensures the property serves the needs of future tenants or your business operations effectively.
- Addressing Safety Concerns: Incorporating safety features like emergency exits and fire sprinklers not only meets legal requirements but also makes the property more appealing. Safety improvements protect your investment and make the space more desirable to potential tenants.
- Sustainability Adds Value: Eco-friendly renovations like energy-efficient upgrades and better insulation increase the property’s long-term appeal. Sustainability is a key factor for many tenants and boosts the property's marketability.
- Aesthetic Improvements Drive ROI: Focusing on both the interior and exterior aesthetics significantly enhances the overall property value. Investing in lighting, design, and modern upgrades can ensure a higher return on investment.
- Post-Renovation Maintenance: A maintenance plan is essential after the renovations are complete. It ensures the property remains in optimal condition, helping to preserve its value and reducing long-term costs.
Register Your LLC - Company Registration
START NOWWhy Renovate a Commercial Property?
Before taking a look, it’s worth diving into why you should renovate a commercial property in the first place. You could feel like your property is good enough as it is. That isn’t always the case, and countless commercial properties could need even a little bit of work.
There are more than a few benefits to putting the time and effort into it. Some of the more notable of these are:
- It makes your property more appealing to companies that could rent space in it.
- You can charge a higher rental price to any potential tenants.
- You’ll increase functionality and overall aesthetics.
- It helps you remove any safety hazards or issues in the building.
- You’ll have a greater overall property value once it’s renovated.
These are all more than enough to persuade most people to renovate a commercial property. While it’ll cost a decent bit of money, you’ll see a return on investment with it.
As much as you’ll want to do it, you mightn’t be sure of where you should start. You could even think it’ll have to be an overwhelming process. It shouldn’t have to be, though. A few commercial property renovation tips can help you more than you’d think. You’ll get through the process easier.
They’ll even help to make sure your property is as amazing as possible once the renovation’s done. Seven of these tips could be more than worth it.
Renovate a Commercial Property: 7 Tips to Use
1. Have a Project Plan
Getting through a commercial property renovation can be a complicated process. If it’s your first time doing it, then it could seem overwhelming. Thankfully, there are a few ways to make this a lot easier. One of the more notable is to have a project plan for the entire renovation process.
This should include the overall timeline, goals for the project, and more. The more well thought out of it is, the more it’ll help you. It makes sure everyone’s on the same page with the renovation. You’ll even know exactly what to expect throughout the process.
2. Reduce Waste as Much as You Can
Depending on the extent of the work being done, you could end up generating a lot of waste by the end of the renovation. This includes scrap metal, wood, and much more. Naturally, you’ll be responsible for getting rid of this, but it’s worth taking the time to avoid it as much as you can.
Reducing the waste you need to get rid of is always recommended. Making sure you know exactly how much you need for your renovations is worth it. At the same time, you could consider donating or recycling anything that’s left over at the end.
3. Start Off With Aesthetics
How your commercial property looks plays a vital role in making money out of it. Potential tenants will want to rent somewhere that actually looks nice. If you’ll be basing your own business in the property, then the aesthetics will play a role in your overall branding and visual identity.
Both the interior and exterior of the property should be focused on with this. The better your aesthetics are, the more of a return on investment you should get long-term. Don’t overlook natural lighting when you’re doing this, as it could have a significant impact on how the interiors look.
4. Don’t Overlook Safety Features
It’s always worth keeping safety in mind with your commercial property. It protects your investment, and it makes the property more appealing to potential tenants. Take the time to invest in safety features across your property. There are more than a few of these you can focus on from the start.
Emergency exits, sprinkler systems, and more will all be a part of this. A lot of this is legally mandated, so it’s an area you’ll have to invest in. It could be worth going out of your way to go beyond that, though. Potential tenants will more than appreciate it.
5. Try to Improve Space Efficiency
Commercial properties always need to keep space in mind. Tenants need to be able to use this wisely, and it’s worth keeping that in mind when you’re renovating. How efficient you are with space is a large part of this, and it’s one of the more notable areas you should focus on.
Take a look at how the space currently is, and see if there are ways to improve the overall space efficiency. While this means making a few adjustments, it’ll make the property a lot more functional to use once the renovations are done. You’ve no reason not to.
6. Keep Sustainability in Mind
More and more people are focusing on sustainability. Your potential clients or tenants will keep this in mind with everything they do. That’s why it’s worth keeping sustainability in mind when you want to renovate a commercial property. There are more than a few areas you can focus on with this.
Reducing waste, as mentioned above, is part of this. You could also consider investing in energy efficiency and other sustainable areas, like insulating your commercial property. This makes your commercial property easier to maintain and it’ll attract potential tenants much easier. You’ve no reason not to put the effort into it.
7. Have a Maintenance Plan
Once the renovations are done, you’ll still need to look after your property. That’s why it’s always worth keeping maintenance in mind when you start renovating. Consider how easy it’ll be to maintain everything, as well as how much time you’ll have to spend on overall maintenance.
Sometimes, it could be worth avoiding some renovations because of how much time and effort the maintenance will need. It mightn’t actually be worth the time and effort. Either way, it’s worth taking the time to develop a maintenance plan for when the renovations have been finished.
Renovate a Commercial Property: Wrapping Up
Trying to renovate a commercial property often seems complicated, and it takes a lot of time and effort. Despite that, there are plenty of reasons to put the work into it. You could make much more of an income from the property because of it, for example.
You’ll still need to actually know what you’re doing first. While this seems complicated, it shouldn’t have to be as hard as you’d think.
Focusing on a few areas and taking advantage of a few commercial renovation tips helps quite a bit. While they wouldn’t remove the work involved completely, they should make the process easier and make sure your property is as amazing as possible.
