For those who know about the ins and outs of commercial properties, renovation is something that they know is inevitable, which is why they consider it to be an investment more than an expense. There are some landlords and property managers who believe that their premium location will always keep them flush with tenants willing to pay above-market rates despite building appearances; property investors in competitive regions such as Southern California know that this is not the case.
Refreshing Commercial Properties
When you see commercial properties that look like they have not been cared for or renovated for a while, chances are that they are owned by an individual or a family instead of a group of investors. The problem with foregoing remodeling or renovation projects is that competitors seem to always be two steps ahead in this regard. Let’s say an office building in Victorville has great access to I-15 and State Route 18; if the building appears to be run-down and poorly maintained, prospective tenants will not have a problem moving into a location located a few blocks away.
Consider Renovating Business Locations
Strip mall investors and managers are renovating their properties with some of the factors that used to be found in shopping malls. Common areas are being improved with outdoor lounges that customers can use for dining and leisure; these spaces can also host amenities such as art exhibits and live music performances. Landscaping is also being favored with raised flower beds, terraces, and fountains.
With regard to office buildings, we are seeing corporate parks doing a better job in terms of renovations when compared to freestanding structures. The factors to consider prior to a renovation project include:
- Compliance with California building regulations.
- Mechanical and electrical systems.
- How the structure will be able to support renovations.
- How existing utilities are faring.