Adding Value to an Investment Property
Commercial real estate properties are excellent long-term investments. However, many believe to have a successful property investment, vast amounts of time and money needs to be applied. Many don’t realize there are various ways to increase and optimize the value of a property in basic ways.
In fact, one of the easiest ways to increase the value of a commercial real estate property is to capitalize on the Net Operating Income (NOI). Before spending extra money on renovating or updating the space, an initial option property owners can look into is to review their leases.
For example, ReDev Properties Ltd. often shops for properties where tenant’s leases are close to expiry. This way we can re-evaluate the leases and terms to ensure they’re competitive and profitable for both new and existing tenants.
As under-market leases expire, property owners have the opportunity to renew them at higher market rates, which in turn will increase the NOI of the property.
Finally, when looking to sell a property, it’s important to have it fully leased. This ensures the property will receive its highest value, as every portion of the property will be producing income.