In many ways, investing in commercial properties is no different from residential real estate. However, the markets are very different and your approach to the investments should reflect this. When they do, you’ll be far better positioned to secure bigger contracts and maintain high occupancy levels.
If you are a new investor or making the transition from a residential market, you may feel a little confused. With the following strategies in place, though, you will be destined for greatness in Louisville and beyond.
Maximize the internal space
When working with commercial spaces, you need to consider the needs of your tenant. They will seek maximum floor space, storage, and accessibility. After all, this will create more opportunities for selling as well as expanding with larger workforces.
Mezzanine floors are a very popular choice in buildings with large ceilings. When you also use railing companies to create an eye-catching and safe setting, business owners will take note. Better still, it enables you to charge a larger monthly fee.
Creating an open-plan layout can be useful too as it helps prospective tenants see the space in a different light.
Make the exteriors more appealing
First impressions count for a lot in business. As well as creating the “wow” factor for your tenants, external upgrades can impress their clients. Given that this can translate to increased sales for them, this will make the property more appealing.
This is especially true when dealing with stores and offices that attract foot traffic. While signage is largely down to the tenant, you can add attractive features like solar roof panels. Meanwhile, redeveloping the parking lot will make a difference.
Besides, when those updates give the tenant a better shot at success, your tenant turnover rates will fall.
Consider shared spaces
When purchasing large office buildings, finding a single company to hire the entire building may be difficult. Transforming it into multiple units could be the answer to your problem. Not least because you’ll only have to fill a percentage of dwellings to break even.
Shared spaces can also take the form of coworking spaces. The average freelancer in Louisville earns around $55-&$70k. They, along with microbusinesses, are often more open to hiring a desk rather than an entire office floor or building.
Aside from opening the door to more people, breaking the building into smaller spaces means you can charge more per square meter.
Get help with management
Several issues could hinder your progress with managing a portfolio of commercial properties. Frankly, a lack of time is one of the most common. Particularly if you would need time to research how things are done before following through with ideas.
Therefore, finding the right property management solutions is essential. They may range from outsourced management companies to software. Either way, the ability to make informed decisions quickly will free up more time.
As well as achieving more with individual assets, it will give you the opportunity to grow your portfolio with additions. Your future in commercial real estate never looked brighter.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)