4 Improvements to Make Before Listing Commercial Property
Selling property tends to require some kind of investment— whether that’s time, money, or both. Real estate has become increasingly competitive across the board and has made it more important than ever for properties to stand out. If you plan on listing a commercial space or building, there are many ways that you can improve the property and cater to buyers or tenants, as well as raise the property value for a higher return on investment.
Certain improvements may not apply to every type of property, so be sure to make changes based on your specific needs or market. Let’s dive further into four improvements that you should make prior to selling your commercial property, and how they can help you raise property value or sell faster.
4 Improvements for Your Commercial Property
Renovate the Exterior, Curb, or Parking Lot
Enhancing the exterior of a commercial property is essential for attracting potential buyers or tenants. A neglected building with broken windows, graffiti, or outdated features can be a major deterrent. Simple improvements such as power washing, applying a fresh coat of paint, and repairing any visible damage can make a significant impact.
Additionally, small upgrades like cleaning sidewalks, refreshing landscaping with potted plants, and improving entryways create a welcoming first impression that appeals to investors. Enhancing lighting for the building, parking lot, and walkways can also boost both aesthetics and security, making the property more desirable.
If the parking lot is in poor condition, resurfacing or paving it can dramatically improve curb appeal. For gravel lots, upgrading to a paved surface with proper lighting enhances both functionality and attractiveness. Removing weeds, smoothing rough patches, and repainting parking lines further contribute to a polished look. If on-site parking is limited or unavailable, consider renting nearby spaces to offer potential buyers or tenants an added convenience. These strategic improvements not only increase interest in the property but also enhance its overall value and marketability.
Increase the Property’s Energy Efficiency
Since commercial properties are valued based on their Net Operating Income (NOI), increasing NOI can lead to a higher return on investment when selling. NOI reflects a property’s profitability by measuring revenue after deducting essential operating expenses. One effective way to improve NOI is by reducing utility costs through energy-efficient upgrades, which can make the property more attractive to potential buyers.
Implementing energy-saving solutions, such as automated climate control and light timers, requires a small initial investment but yields significant long-term savings. Features like programmable heating and cooling systems or motion-activated lighting help reduce unnecessary energy consumption, cutting down operational costs.
Buyers also view these upgrades as valuable assets, as they enhance efficiency and contribute to a more sustainable, cost-effective property.
Emphasize & Upgrade Signage
Your property’s signage is one of the first things visitors and potential buyers notice, making it a crucial aspect of curb appeal. A sign that is difficult to read, hidden behind overgrown landscaping, or in need of repair can create a negative first impression and diminish the property’s perceived value. Ensuring that your signage is visible, well-maintained, and professional-looking can enhance the attractiveness of your commercial property.
While warehouse buildings may not always be the most visually appealing, thoughtful upgrades can make a significant difference. Installing a new, well-lit sign that is easy to see from the road instantly improves visibility and adds a polished touch. Replacing burnt-out bulbs, repainting faded lettering, or working with a sign company to refurbish an aging sign can further enhance its impact.
Alternatively, pairing the signage with well-maintained landscaping, such as neatly trimmed grass or bright flowers, creates a welcoming exterior that helps attract buyers or tenants.
Stage Appropriately According to Your Target Audience
Staging a commercial property is essential, but it should be tailored to the target audience. For office or business spaces, creating a professional and inviting atmosphere helps buyers visualize the property’s potential. A fresh, neutral coat of paint, well-placed accessories, and clean, streak-free windows can enhance the appeal. Power-washing the exterior further refreshes the space, making a strong first impression.
Small updates can make a big difference. Replacing worn-out furniture in lobbies, trimming or replacing overgrown plants, and fixing damaged ceiling tiles contribute to a polished look. Cleanliness is equally important— buyers will inspect every area, from the lobby to bathrooms and even janitorial closets. Overlooking mechanical rooms and storage areas can signal neglect, raising concerns about hidden issues. A spotless, well-maintained space reassures buyers and increases the likelihood of a successful sale.
Conclusion: Upgrades Can Lead to Success
Investing time and effort into improving a commercial property before listing it can significantly increase its marketability and value. Strategic upgrades, such as enhancing curb appeal, improving energy efficiency, updating signage, and staging appropriately, can make a lasting impression on potential buyers or tenants.
While not all improvements will apply to every property, selecting the right upgrades based on market demand and property type can lead to a faster sale and a higher return on investment. By taking these steps, sellers can position their commercial property as a more attractive and competitive option in an increasingly demanding real estate market.
Are you looking for a real estate agent to assist with listing your commercial property? Oscar Combs Realtor is here to connect you with the perfect buyers and tenants in the Houston, Texas area. Contact us today to list your property.
