A commercial property is one which can be used in a multitude of ways and is purchased by a landlord as a way of making money from rent or from a steady income as a result of the businesses housed inside the property.
Some examples of the ways that commercial properties are used include warehousing space, office space, public spaces, farm land, and more – with prospective tenants paying far more attention to the location and viability of the space as a business premises than to things like décor and aesthetics which matter more in residential spaces.
Having said that, there are plenty of benefits to refurbishing a commercial property, both for landlords and for tenants, which stretch beyond simple décor. In this blog post, we’re sorting through the various benefits of refurbishment projects, sharing the ones you should focus on and how to plan a successful renovation project for your property or commercial space.
Why should landlords consider commercial property refurbishment?
The rent that you can charge a prospective or existing tenant will depend largely on the size and location of the space you are renting out, as well as the way it is presented. Integrated features, facilities, and furnishings are all considered to be assets when assessing the rental structure of a property or commercial space, with regular rent reviews allowing you as a landlord to consider the value of neighbouring spaces and adjust your own rent accordingly.
For new landlords looking to entice and onboard tenants, investing in the property can have the instant result of enhancing the value, creating a better environment in which tenants can work and become more productive. Now more than ever, tenants seeking commercial properties are looking for cohesive and modern spaces which offer all the facilities they need and more.
And that’s not all. A refurbishment project can also add value in terms of the way the space is separated and segmented into different premises – with savvy landlords able to transform one vast commercial warehouse building into a series of individual workspaces and offices for multiple business tenants. Thereby elevating their monthly income through multiple rental agreements.
In short, the benefits of commercial refurbishment for landlords revolve largely around income and the potential that a refurbishment investment will bring. But what are the benefits for tenants – and how can you ensure your renovation and interior work runs smoothly?
The tenants benefits of refurbishing a commercial property
The main benefit of refurbishment work in a commercial property that you rent is the elevation in the facilities and surroundings that you are renting. While refurbishment often coincides with a hike in the price of you rent, it can have the benefit of making the space more enjoyable and productive to work in, improving access to facilities that you need and improving overall satisfaction within the space.
In addition, if you are already a tenant when refurbishment work starts you may be able to provide some intel into the changes and upgrades you would like to see to make the space even better for you and your business – whether that’s to do with décor and aesthetic features, or integrated facilities.
With that in mind, how can landlords and tenants alike ensure that any refurbishment project runs smoothly?
Tips to streamline a refurbishment project
As commercial properties generally coincide with working spaces, the first and most important thing to do is provide plenty of notice to tenants and/or working staff prior to the commencement of any refurbishment works. This allows them to make alternative working arrangements to ensure their flow of work is not interrupted.
Another key piece of advice is to partner with a contractor or company that is skilled and experienced in refurbishing similar commercial properties to yours. The right company will be able to provide insight and advice on how best to streamline the space and ensure that it is fit for purpose and functional without the need to spend too much on renovations and interior work.
Finally, if you are a landlord, coincide refurbishment work and investment with a pending rent review – giving your tenants plenty of warning and ensuring that you are all on the same page in terms of what they need to become more productive in the space. This will help to ensure that they stay on site, and will soften the blow of a pending hike in rent.
Here at Team Build Construction, we work across both large and small commercial spaces – segmenting vast warehouses into smaller offices, breathing life into outdated restaurants and public facing business premises, and upgrading storage facilities and other spaces for the benefit of both landlords and tenants. For more information on how we could support your latest project, reach out to us today.