Social media has changed how we see the world. We live in a time of filters and Photoshop. How does that play out in commercial real estate? Buyers and potential tenants can be picky. The way your property looks may, or may not, attract the buyer or tenant you want.
Here’s what you can do to maximize your investment income:
1. Talk to a broker a year before the end of a lease or when you start thinking about selling. When you connect, be prepared with updated digital floor plans and have the properties financial documents organized. Costs and pricing can be quickly identified if information is easily accessible. If you own any high resolution photographs of the property, send them to your broker as well.
2. Be sure the curb appeal is on point. Take care of annual tasks including parking lot striping, asphalt repair, and landscaping. Make sure signs are straight––straighten handicap signs and paint posts with enamel black (do not spray paint). Clean signage and windows. Remove eyesores like outdoor ashtrays, litter, and sand barrels; touch up chipped paint or scratches regularly; and use scratch cover oil on interior wood doors. Details make a difference. For more, read “Chain Saws, Line Striping Machines, & Spring.”
3. Inspect the property to get in front of any issues that may come up during showings or due diligence. Look for leaks, stained ceiling tiles, cracks, and structural issues. Test that the HVAC system and light fixtures are in good working order. Address any plumbing, drainage, or mold issues. Finally, make sure all fire alarms and extinguishers, emergency exits, and other security features comply with regulations.
4. Numbers 2 and 3 can be a lot. That’s why partnering with a full service brokerage comes in handy. If they have a property management component –– like our CEG Management –– they could help get the property ready. If not, brokers are great resources for professional referrals. From deal after deal, they know who to trust to get the job done right.
5. It’s important to know the strengths and weakness to have an accurate view of how it will play out in the market. Especially, when a market has slowed, as we’ve seen with mid to large office buildings. Have a candid conversation with your broker about what needs to be done and what you’re willing to do.
With my thirty years in commercial real estate and property management, I know how details affect deals. Reach out –– we’re here to help! Email our team at hello@cegspaces.com or call 612-788-1552 if you have any questions. You can find me at 612-428-3333 or jeff@cegspaces.com.
Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.