Increase Rent

The value of your commercial real estate property can also be increased by increasing the rent. In reviewing the historical data on a property, take notice of whether the tenants are paying market rent or whether there is potential for a reasonable mark up in rents. Determine how the improvements you make to the property can justify your rent increase. Pay close attention to both the upper and lower level of rents that are being charged for similarly situated types of real estate so you don’t price yourself out of the market.

Also, after repositioning the property or changing its usage and after upgrading with a LEED certification, you could charge a premium for these modifications. The upgrades will make your property more desirable, especially now that rents and tenants are decreasing, compared to properties that weren’t upgraded.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

One Response to “Five Ways to Increase the Value of your Commercial Real Estate Property – 4”

1. jason bach says:

   November 5, 2009 at 1:07 pm

   As an economist, what I can say is that all this renovation and upgrading is a good strategy to position properties competitively come recovery time. And just the same, these activities will contribute to decrease unemployment and increase employment, help start money flowing in certain fields, professions and businesses which will help drive economic recovery.

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