General

5 Ways to Get the Greatest Return on Investment Property

In a recent inter­view, archi­tect Charles Hen­dricks stat­ed that A house or build­ing is the most com­pli­cat­ed machine many peo­ple will ever own or oper­ate.” With such a big expense going into some­thing so com­plex, any­one con­struct­ing a build­ing will want to make sure they can get the most out of their invest­ment. By fol­low­ing the tips in this arti­cle, you can be sure that you will get the kind of val­ue you deserve from your prop­er­ty.

1. Keep Updating

Design fea­tures that are pop­u­lar one year aren’t usu­al­ly sought after decades or even just a few years lat­er. Aes­thet­ics change quick­ly and some­thing that was a sell­ing point when the build­ing first went on the mar­ket is like­ly to just be an expec­ta­tion by the time it goes back on it.

Keep mak­ing improve­ments to the build­ing through­out your years of own­er­ship. That way, your build­ing won’t feel old fash­ioned or out­dat­ed and you won’t have to com­pro­mise on price when it comes time to sell. And remem­ber that the pro­fes­sion­als you hire to design the build­ing are often well aware of com­ing trends in design and con­struc­tion, so they may be able to tell you what fea­tures will need to be updat­ed and when.

2. Alter the Purpose of the Property

Prop­er­ty val­ues for com­mer­cial spaces can increase dras­ti­cal­ly when the intend­ed use of those spaces change. Old ware­house spaces, for instance, aren’t worth all that much but their val­ue can go soar­ing if they’re con­vert­ed into mul­ti-fam­i­ly or hotels.

Depend­ing on the loca­tion of your build­ing, it can be turned into just about any­thing that fits with the demands of local con­sumers, whether it’s an office build­ing, a con­do­mini­um com­plex, or a retail cen­ter.

3. Add Amenities

This is one of the sim­plest and most straight­for­ward ways to siz­ably increase the val­ue of your prop­er­ty. Let’s say you have an office space that you will want to sell some­day, add a day­care or a yoga stu­dio (or both!) to the build­ing. Not only does that add cul­ture to the office space, it will boost the price when you put it up for sale. Like­wise, if you are plan­ning an apart­ment build­ing with a large num­ber of fam­i­ly units, con­sid­er putting a play­ground on the prop­er­ty.

And, of course, don’t over­look the small-scale ameni­ties that can make a big dif­fer­ence, like high-speed Wi-Fi inter­net acces­si­ble to any­one inside the build­ing.

4. Build Rentable Space

One of the rea­sons it’s cru­cial to work with an expe­ri­enced, pro­fes­sion­al design­er is that they will be able to work with you to max­i­mize the square footage you can rent out. Less expe­ri­enced or skilled design­ers might leave too much square footage under­uti­lized, which essen­tial­ly robs you of your property’s earn­ing poten­tial.

Com­mu­ni­cate your inten­tions very clear­ly dur­ing the design phase: let the design­er know that you want to be able to rent out as much square footage as pos­si­ble. That will mean sac­ri­fic­ing a few things that look great on paper but that won’t bring in any rev­enue. Stay away from flashy, extrav­a­gant designs. You might think it’s what you want, but look care­ful­ly and what you will usu­al­ly see is exces­sive lob­by space, poor­ly designed hall­way arrange­ments, and unfin­ished areas with­out a des­ig­nat­ed pur­pose. Instead, look for ways to use wast­ed space: if one room seems too large, con­vert it into two cozy office spaces. Do what­ev­er you can to ensure more ten­ants (whether for office, retail, or apart­ment space) can rent.

5. Go Sustainable

For a long time, when­ev­er any­one saw the words sus­tain­able” or envi­ron­men­tal­ly friend­ly” they assumed it was code for expen­sive.” Now, how­ev­er, we’ve all come to real­ize that sus­tain­able prod­ucts tend to cost a lot less in the long run.

One way to make sure you get a great return on your build­ing is to earn LEED cer­ti­fi­ca­tion. LEED cer­ti­fied build­ings make effi­cient use of resources and, as a result, have low­er oper­at­ing costs. Not only will that trans­late to long-term sav­ings while you own and man­age the prop­er­ty, it is also an attrac­tive fea­ture for any­one who wants to rent space in your build­ing and can allow you to increase the rental price.

And, of course, once you put the build­ing up for sale, the LEED cer­ti­fi­ca­tion will be an appeal­ing fea­ture. A grow­ing group of cor­po­rate, pub­lic, and indi­vid­ual buy­ers are not only keen on sus­tain­abil­i­ty but are specif­i­cal­ly look­ing to pur­chase or occu­py prop­er­ty that has been LEED cer­ti­fied.

As archi­tects and own­ers for strive even more sus­tain­able, safe and healthy build­ings, they are turn­ing to inno­v­a­tive con­struc­tion prod­ucts. Rather than just adapt­ing and adding to tra­di­tion­al con­struc­tion meth­ods they are start­ing to use new meth­ods that have been designed to save con­struc­tion time and mon­ey while being more sus­tain­able.

The inno­v­a­tive Bau­tex Wall Sys­tem is an exam­ple of a prod­uct that has been designed from the ground up to build walls more effi­cient­ly and improve the return on your build­ing invest­ment. Learn more here.