How To Add Value To a Commercial Property
On the heels of low occupancy rates, it’s an ideal time for commercial real estate investors to acquire and upgrade new projects. Historically, CRE offers a lucrative and reliable return on investment, but these developments require active management and smart building upgrades. There are many ways to increase commercial property values and maximize your return.
Three Ways to Increase Property Value
In most markets, energy efficiency upgrades in commercial properties offer exceptional value. While there are many costs associated with owning and operating an office building, energy consumption is a substantial one. The average electrical cost per square foot is $1.44, which offers owners and facilities managers an opportunity to derive value from energy consumption reduction.
Let There Be Light
Commercial lighting systems deliver energy efficiency and increased productivity. Switching to LEDs and investing in an automated, sensor-based system delivers real savings; LEDs are 90% more energy efficient than traditional fluorescent lighting solutions and last much longer. Fixtures matter, but don’t underestimate the advantages of a bespoke automated system; your Keen energy consultant will build the perfect lighting network for your facility.
Who pays for lighting upgrades, a commercial tenant or property owner?
Upgrade expenses are usually defined in the lease agreement. Sometimes, the owner and tenant split the upgrade costs for lighting fixtures and installation, but every situation is different. Check your lease to see who is responsible for elective upgrades.
2. Switch to a Heat Pump
Today’s commercial heat pumps deliver heating and cooling capacity at a fraction of the energy costs of traditional HVAC systems. Research shows heat pumps could help businesses lower their heating and cooling expenses by 50%. Making the switch is more affordable than you might think. Keen helps our clients leverage grants, rebates, and other financial solutions to make commercial heat pumps a smart move.
3. Upgrade Amenities
As businesses and workers return to the office, amenities matter. Offering tenants freshly-painted spaces, flexible workspaces, and other amenities helps retain existing tenants and increase rents upon renewal. Upgrading commercial properties with EV chargers is yet another forward-thinking investment that attracts new occupants.
Elevate Your Commercial Property Value with Keen
Keen Technical Solutions has helped Nothern Michigan businesses make smart energy-efficient upgrades. From lighting to HVAC, we bring deep industry experience that allows us to maximize cost savings across building systems to deliver the biggest return on investment possible. Let’s get started; contact a Keen Technical Solutions consultant today.