Making the Most of Commercial Property

Owning commercial property is a great way to make consistent income. However,

there are too many commercial landlords not making the most of their space and,

therefore, not making the most money from their commercial spaces. With a few small

investments in a commercial property, building owners can increase their positive

cash flow and ensure long-term tenant relationships. Here are a few ideas on how to

make the most of a commercial space:



Maximize Physical Space

Oftentimes, commercially rented buildings are not utilizing the maximum amount of

physical space. Unfinished areas or square-footage that hasn’t been built out is

essentially dead air. Build these spaces out, but make sure they’re comfortably sized.

The goal is not to sacrifice necessary square feet in other units in order to squeeze in a

rentable space. Tenants will feel cramped and are less likely to renew their lease.


Property owners will want to create areas that are inviting, not tight and

uncomfortable. If it is possible to finish any unused spaces and divide the units in a

reasonable way, investors can create additional opportunities for income. If dividing

the interior space comfortably is not an option, there are ways to maximize the use of

exterior spaces. Additional storage, company event spaces, extra parking, or building

employee areas are all ways to increase the value of a rented property without costing

owners much.


Make sure your building is using every square foot in a positive way. Build out areas

that are unfinished and create useable areas on the exterior of your building if

possible. You will be giving tenants a little something extra, which brings us to our

next point.

Offer More

By creating an inviting and comfortable environment for tenants, property owners

give themselves an edge against competitors. Small efforts, like adding coffee and

vending machines to public or shared spaces not only provides positive cash flow, but

can also give a commercial building that extra boost of convenience. The goal is to get

tenants to stay long-term.


Other ways investment property owners can offer extra services is by offering

cleaning services, maintenance and repair, advertising opportunities (such as

billboards outside the building), and trash removal for tenants. Be sure to negotiate

these terms when it’s time to sign the lease, allowing tenants to choose which services

they are willing to pay extra for to make their own lives easier.


Offering additional services, meaning more than just a unit to rent, gives property

owners a stronger relationship with their tenants. Good relationships are key in

getting tenants to sign long-term leases and helping owners avoid the cost and

frustrations of high turnover rates and vacancies.

Maintain the Property

Of course attracting and keeping tenants is every commercial property owner’s goal.

Maintaining the property goes a long way toward meeting that goal. Poorly designed

or unattractive buildings can make it difficult to get and keep tenants. Updating

windows and doors is a simple, yet effective, way to increase the value of a commercial

property while also keeping your building looking and feeling fresh. Even a new coat

of paint on the exterior of the building can make a property more attractive and

valuable.


Consistency is key when it comes to property maintenance, as the cost of major

repairs and damages often outweigh the cost of steady upkeep. Unlike residential

properties, commercial properties incur more damage day-to-day. Regular

maintenance is a practical step toward making sure property owners are not left with

staggering costs of emergency repairs and replacements. Commercial property

owners should not only ensure routine maintenance checks, but also have a repair

company on hand in case an issue arises. Catching plumbing and electrical issues early

keeps tenants happy and the building safe.


Safety is important to tenants, and investing in security is another good way to add

value to your property and entice tenants. Updating or increasing security by adding

gates, window shutters, or alarm systems can all increase value.


Why it Matters

At the end of the day, commercial property owners want to create a space where

tenants want to stay. It might seem like a lot of extra work to implement, but investing

in the property ensures an increase in steady and positive cash flow. Turnovers and

vacancies cost owners money, it’s that simple. Not only because of the lack of

incoming rent, but there’s the expense of advertising the space while trying to find

new tenants.


Making the most of commercial space can be accomplished in several ways. Whether

it’s maximizing square footage that isn’t being utilized to its full extent or simply

providing an attractive and updated work space. Small investments create positive

cash flow for commercial property owners, while giving the property an edge in a

competitive commercial market.



Do you have a commercial building project in Terre Haute or the Wabash Valley? Contact Hannig Construction, Inc. today and a representative will reach out to you shortly!

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