Adding value to your retail property is an essential goal for any investor. Not only does it ensure more profitability. But, it protects you against potential issues when the retail market becomes a little tougher. In today’s guide, we’re going to go through several ways to improve your retail investments. So, read on to find out how to maximize your return on investment. Let’s get started right away.
Always have tenants
One of the biggest expenses you will face as a commercial retail property owner arises when you don’t have any tenants. It is essential, then, to ensure you rent to better tenants, for longer periods, to protect your investment. Your best bet is to choose a large brand that is enjoying a sustained period of growth – and that also attract people to the area. For example, if you own a shopping plaza, the bigger retail names tend to bring larger amounts of people
Keep an eye on your lease
The longer the lease you have, the more attractive you will be to any prospective buyer when the time comes to sell. It will also ease any concerns that retailers might have about the length of time they will be able to use your premises as a store.
Make improvements
As any good property investor will tell you, making improvements to retail stores will secure a better quality tenant. And, they will often be willing to pay that little bit more that can make the difference. You can use previous profits or business loans to pay for any upgrades – but concentrate on those things that will bring you a better return. A clean, attractive storefront is essential, as is a modern, fresh interior.
More traffic
The more traffic you have coming to your property, the more appealing you will be to retailers. And, of course, the more your tenants are making, the more you can charge them for rent. There are a few things you can do to improve your traffic levels. Start by counting the data you currently have and look into the potential of extending car parks. You can also lobby your local authorities to improve traffic routes to and from your business.
Watch market trends
You have to be switched on to the many problems and issues facing the retail world right now. Once you understand these problems, you will be able to avoid renting out to the wrong tenants. You will need to consider longevity, of course, but there can also be sudden downturns in particular sectors. It is vital to have a good mix of businesses in your plaza or block, as it will give you protection from market changes.
As you can see, there are several important things to consider when you own a commercial retail property. Not only will they protect your investment, but they will also give you the opportunity to get a better ROI. Let us know your thoughts about retail property investment in the comments section below – and feel free to leave any advice, too!
