What’s the number one thing buyers look for in commercial real estate?
Many would say the answer is location. There’s no denying that a property’s location is foremost in the minds of commercial buyers.
However, there’s more to location than a property’s address. Prospects will also ask questions like:
- What is the cost of utilities and upkeep?
- Does it look attractive and welcoming (and if not, what will it cost to bring it up to par)?
- Is the property safe and secure?
- Are there major repairs, renovations or replacements on the horizon?
- Is the space accessible to our clients and customers?
With that in mind, here are a few key areas of improvement to focus on when it comes to preparing a commercial property for sale.
1. Exterior Condition of the Building(s)
When people visit the same location every day, they tend to turn a blind eye to its minor imperfections – things like graffiti, chipped paint, or a burned-out light.
It’s an effect called habituation. We stop noticing things we see or hear many times.
However, people who see the property for the very first time are bound to notice its flaws, especially those who are scrutinizing it as a prospective buyer. Even minor faults could raise questions about the costs of restoration.
Is it feasible to remove that graffiti, or will we have to paint over it?
What will it cost to strip and restore that rusted railing?
If the owner hasn’t bothered to replace a light, what does it say about their care for the rest of the property?
As a seller or manager preparing a commercial property for sale, you should endeavour to view the condition of the property with fresh eyes. Think of the impression it makes on someone seeing it for the first time.
Making a small investment in exterior repairs and restoration can go a long way when it comes to winning over buyers.
2. Cost of Upkeep
Energy expenses can be substantial here in Southwestern Ontario, even for small businesses.
Prospective commercial property buyers pay close attention to the efficiency and overall condition of any appliances, lighting, and other building systems that come with it. It counts as a strike against the property when the equipment is outdated or inefficient.
On the other hand, energy-efficient appliances and lighting can be a strong selling point.
Upgrading a property’s heating, cooling, and lighting systems can significantly increase its value and reduce risk in the eyes of a buyer.
Luckily, there are many rebates and programs in Ontario designed to help businesses become more efficient. For example, the Retrofit Program can provide funding for LED lighting retrofits and control systems.
It is clear why parking amenities are so important to commercial buyers.
Although alternative transportation is gaining in popularity, most of us still get around in our own vehicles. Outside the City of Toronto, over 80% of the population of Ontario commutes by car or truck.
It’s not enough simply to have adequate space for customers, clients and employees to park; the parking space must also be safe. Not only is a poorly-lit parking lot uninviting, but it could easily become a liability issue for the property owner.
That’s one of the last things you want prospective buyers to contemplate when they see your property.
Having a clean, brightly-lit parking area is a big point in favour of any commercial property.
Need Help Preparing Commercial Property for Sale?
SignLITE supports property owners and property managers on commercial restoration projects across Southwestern Ontario. Our services include professional graffiti removal, commercial sign repairs and restoration, LED lighting, other outdoor commercial and industrial lighting, and interior and exterior media blasting.
Contact us to get your commercial property in shape in sell.