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Commercial property renovation hacks that add value

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As an investor, you want to be up-to-date with market trends and find ways to bring in tenants to your commercial properties. If they’ve sat bare for a couple of years, and looking dates, then it’s time to get renovating. We have a couple of hacks so you can focus on the right areas, where you can make the most money off your depreciation schedule.

 

Bathrooms

Not just any type of bathroom with a few toilet stalls and basins; looks definitely matter. Offices, shops and restaurants are becoming fancier with their designs. Even gyms have bathrooms worthy of an interior design featurette.

A gym shower and sauna in the USA

Bathrooms are major selling points for tenants in both residential and commercial property. Natural wood elements and lighting paired with neutral tiles is a common combination that never fails to impress. If you own an office block and have the room, fully equipped bathrooms are an excellent selling point. Workers often hit the gym before they make their way to the office. They’ll need a place to freshen up before the day ‘officially begins’.

 

Kids play area

Employees have families, as do potential visitors. And not everyone can bring in a babysitter or find a daycare. Having am on-site kids play area in a commercial property isn’t that unusual. Shopping centres have done it before, and the trend is slowly spreading to gyms and workplaces.

 

Kitchenette

Definitely a feature that will attract tenants. They need a place to keep their food, make their coffee and take a break from their desks. The kitchen is where you can make money in terms of the plant and equipment items in place there. This includes the dishwasher, espresso machine, microwave, sink and fittings.

Outdoor entertaining

Humans need sunlight and fresh air; what better way to access it at work than an outdoor area? When you’re renovating the property/making an extension, turn the extension into a patio with some hedges, a barbecue and some outdoor furniture. The barbecue and the furniture can be depreciated.

 

TVs

Yes, we are giving you an excuse to go out and buy some big screen televisions. Modern properties have a showreel on their TV screens, usually placed in the foyer and meeting rooms.

 

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Ideal tenants for a commercial property

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Commercial property is a lucrative investment if you have the right tenant. Early on in your property investment planning, you should’ve given thought to who you want in your space. If you’re just starting out, this can act as a handy reference.

 

Coworking space agency

There’s more gig-workers, digital nomads, and freelancers than ever before. They all need a space to work, so why not make yours the best place?

 

Normally they won’t lease the space through you. This is done by the coworking space agency renting the building. If you’re creating a commercial property from the ground up, make sure your design includes a combination of areas than can be used as board rooms alongside open-plan working spaces.

When you’re shopping around for a new property, location is the biggest factor. You’re more likely to get a tenant like this if you purchase an inner-city location, close to public transport. New laws mean you can only depreciate the plant & equipment you install yourself. If the commercial property needs some ‘fixing’, like new taps and lights, you can deduct these without any trouble.

 

Restaurant/bakery/cafe

This tenant is always going to return a good rental profit when they find the right location. Restaurants, bakeries, and cafes are everywhere, both in CBD and suburban areas.

Cafe’s where people can work or relax with a coffee and croissant are always welcome

A commercial property like this will need up-to-date plant and equipment. You can install these yourself and claim the deductions over time. This includes ovens, stoves, refrigeration, and even the taps. If you’re lucky, a well-known cafe will need to open a second location and you’ll happen to have the perfect property ready to lease.

 

Retail boutique

These ones are trickier to lease and it’s best left to your property manager. Their screening process ensures the potential tenant is suitable to lease the space.

Retail is very competitive and some small businesses do struggle. But those who thrive will either open a second location to keep up with demand, or shop around for a larger space.

 

Media agency

A small or mid-tier media agency, like marketing, will definitely treat your commercial property with respect. It’s their ‘home’ and a place for them to host clients of their own. The property manager will interview them to make sure their level of income is suitable to keep up with the rent.

To attract a tenant like this, it’s good to keep the office space to bare basics. The tent will dress it up themselves. It’s also ideal to have a cordoned-off ‘boardroom’ space for private meetings.

 

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