Our team at Ferstl Valuation Services has been offering trusted real estate appraisals in Little Rock since 1967, and our services also include expert witness testimony in property or eminent domain disputes and real estate consultations for investors who are considering updating their portfolio of commercial real estate properties. Scheduling a professional appraisal is an important first step in buying or selling a property, and there are numerous factors that influence a property’s fair market value. You won’t be able to change the property’s location or influence supply and demand, but a few relatively inexpensive upgrades can often significantly increase a property’s resale value.
Every property investment comes with its own combination of risks and rewards, and it’s important to choose renovations and upgrades that offer enough “bang for your buck.” Some upgrades are costlier than others, and you should always understand your own limitations before attempting to tackle any major renovations on your own. Here are a few things to consider as you reinvest in your commercial properties:
Make physical improvements—Reconfiguring a property’s physical layout or floor plan can often help you better suit current market demands in communities that are poised for rapid growth. Prospective tenants always appreciate properties with renovated bathrooms, kitchens, and flooring, and a fresh coat of paint is an inexpensive way to breathe some fresh life into an older property.
Improve operational efficiency—Routine maintenance is a crucial component of property ownership, and it helps you manage your long-term costs and maintain your property’s value. It’s also worth considering installing energy-saving systems to reduce your daily operating costs and increase your overall profitability.
Review your market position—Raising rents might adversely affect current tenant retention, but you’re leaving money on the table if you don’t optimize income potential in a market on the rise. But in a competitive market, it’s always important to find ways to add more value. Tenants are willing to pay a premium for upgraded office space in a convenient location and are always interested in locations with ample on-site parking that also include attractive amenities such as outdoor gathering areas and fitness centers.
For more information about real estate appraisal services in Little Rock, contact us online or at 501-375-1439.
