Oil change or car wash? All these new car wash clubs are trying to get a share of your hard earned cash. A clean shine won’t get it rolling down the road, but a maintained engine will.
Bottom line – details and regular upkeep matter, whether with a car or a building. CRE owner users or investors designate an annual budget to maintain a building and grounds. Here are some quick management tips on spending it:
1. With our lack luster snow totals this year, some may find extra cash in their management budget. Don’t suck the cash out of the building and buy a new car, take a trip, or go on a spending spree. Instead, use the money budgeted and invest in your investment. Handle roof repairs, finally replace those rusty hinges on your main door, reapply caulk, touch up paint, replace dented overhead door panels, and/or tackle those projects you’ve meant to get to, if only…
2. If you don’t see a line item savings but know your property has projects, be creative. Spend less on flowers and buy more caulk. Don’t get behind on maintenance! My blog Chain Saws, Machines, and Spring lays out my advice on CRE “spring cleaning” to refresh your property after winter. Think about how your choices now impact maintenance and value later on. Is painting that brick or aggregate building the right way to spend your money? Are you committed to a large repainting line item moving forward?
3. Even if you have vacancies, don’t be tempted to pull back on maintenance and curb appeal. If you missed my most recent blog, "How to Get Your Commercial Property Ready to Lease or Sell", you can read it here.
4. In commercial real estate, you do want to "keep up with the Joneses." Your property is in direct competition with CRE around you. By all means, be competitive and use funds to take care of your property better than your neighbors – crisper lawn edges, bright white parking lot stripes, smoother pavement, straighter parking and handicapped signs – details matter.
5. Maintaining commercial real estate is expensive. But it’s super important not to let your property get away from you. Spending money to regularly maintain HVAC systems is much cheaper (and sucks a lot less) than having your heat quit in the middle of winter or your AC going out this summer. A good property management team can outline a regular upkeep schedule to keep your investment sound.
Decisions you make now can influence your ability to sell or lease the property in the future. Potential tenants and buyers want a property that is cared for. They don’t want a property that is shiny on the outside but is falling apart on the inside. They want it to look good and be good.
At CEG, 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.