Increasing the value of your Champaign-Urbana commercial rental property with renovations and upgrades will obviously earn you more money. A property that’s well-maintained and modern will bring in more rent. You’ll have an easier time attracting and retaining long-term tenants, and later on in your investment process, you’ll think about selling. When you do, you’ll be able to sell for a higher price.
Which renovations make the most sense? We’re sharing our thoughts about that.
Evaluate Where You Are with Your Commercial Property
Assess your property for mechanical, electrical, and plumbing strength when you’re thinking about renovations. If you’re going to make major changes, you’ll need to be sure the structure and format of the building can accommodate what you’re hoping to do. For example, if your commercial space is rented to restaurants and a kitchen is needed, you’re going to have to check the gas and plumbing systems before you make any cosmetic changes or upgrades. You want your pipes, sewer lines, vents, and electrical outlets to be able to handle any proposed improvements.
Start by evaluating the existing infrastructure of your commercial property. That will inform your budget and help you settle on a reasonable scope of work.
Invest in Safety Upgrades for Champaign-Urbana Commercial Spaces
Safety and security renovations are always going to take precedence over any aesthetic or design renovations. You have to provide a safe and functional commercial property before you worry about curb appeal or layout.
Some areas that may require safety renovations include:
- Fire escapes and emergency exits. Are they easily identified and well-lit?
- Improve the lighting in staircases, corridors, and exterior spaces like parking lots and walkways.
- Hire licensed contractors to inspect and service any electric and plumbing systems.
- Upgrading your security system, alarms, or video surveillance systems.
- Inspect the building’s roof, floors, walls, and foundations. Make any renovations or upgrades that are necessary to comply with city codes and habitability expectations of potential tenants.
- Look for areas that you can improve your insulation or weatherization. Seasons in Champaign-Urbana are extreme, and good weatherproofing will increase the value of your property and offer higher returns in the long term.
Think About Commercial Champaign-Urbana Tenants
Tenants who choose to rent a commercial space are usually looking to commit to a much longer lease term than your residential tenants. It costs them time and money to move, so your prospective commercial tenants will want to ensure that the property they choose fits their needs in the long term.
When renovating the interior of your commercial property, think about how easy it would be for your tenants to adjust and adapt the space to their unique business needs. You want to offer a space that invites growth and flexibility. Offering an open concept rather than a suite of private offices, for example, can often give you a wider range when it comes to attracting tenants. Create a commercial space that will allow your new tenants to make it their own.
Commercial renovations often depend on the type of property you own. The way you upgrade a retail space, will be much different than the way you improve an industrial warehouse. We can talk about your specific needs and your unique property. When you’re renting out commercial property in Champaign-Urbana, contact our team at Ramshaw Real Estate.