Determining the value of your commercial property requires you to look at square footage, value per potential rental income, and other factors. However, you should also consider the aesthetic value of commercial real estate.
Related: Selling a Business With Real Estate
Simple things like layout and design are more important than ever to commercial property buyers. With a clear understanding of your commercial property's aesthetics, you're well-equipped to establish a fair price for your property and maximize the earnings from your sale.
Why Is It Important to Consider Aesthetics?
Aesthetics are vital for commercial property sellers. But over the years, they have frequently been ignored by commercial real estate professionals.
Traditionally, commercial real estate professionals have used any of the following methods to determine a property's value:
- Comparable Method: A property is evaluated in relation to others in the area.
- Profits Method: Real estate professionals perform an analysis of the financial details surrounding a property; this method can only be used if a property is currently or has recently been in use.
- Gross Rent Multiplier Method: The property's selling price or value is divided by the property's gross rentals.
These methods are tried-and-true, but they are imperfect. This is because these methods do not allow commercial real estate professionals to account for a property's unique design, layout, or architectural features. And failure to account for these factors can cause a seller to miss out on an opportunity to get the best price for their commercial property.
Related: How to Value a Business
Buyers want commercial properties that can deliver a long-lasting ROI. If your property does not impress from the get-go, buyers will likely move on to other options. This can cause your property to linger on the real estate market for an extended period. It can make it virtually impossible for you to get the most value out of your property sale as well.
Understanding the relationship between aesthetics and your commercial property's value is key. If you prioritize aesthetics, you can identify ways in which your property stands out from others. From here, you can highlight your property's aesthetics to prospective buyers. Plus, you can establish a value for your property that accounts for its aesthetics.
5 Factors That Can Impact Your Commercial Property's Aesthetic Value
There is no single factor that dictates a commercial property's aesthetic value. Instead, it is important to consider a variety of factors that can impact this value, including:
1. Paint Color
Research indicates there may be a correlation between mood and color. Certain colors may be more attractive than others to commercial property buyers. As such, it helps to weigh the pros and cons of different colors carefully before you sell your property.
Some experts say red, blue, and green are the best exterior paint colors for commercial properties. These colors can help businesses enhance their properties' curb appeal. At the same time, they help customers quickly and easily find these companies' properties.
Comparatively, blue, green, and white tend to work best for a commercial property's interior paint colors. Businesses can use these paint colors to help customers feel calm, cool, and collected as soon as they enter their properties. Furthermore, these colors can set the stage for positive customer experiences.
To determine what paint colors to use outside and inside your commercial property, analyze your property's current paint colors. Oftentimes, it pays to match paint colors to your property's décor and furniture. You can even hire an interior designer to assess your property's paint colors and provide recommendations.
Keep in mind that choosing multiple paint colors can be problematic, too. If you try to do too much with your paint colors, your commercial property can become an eyesore. Instead, use only the colors you believe will help your property dazzle.
Your commercial property's floors can wear down over time. They can also be signs that there may be serious issues with your property that will impact its valuation.
Commercial property flooring is susceptible to water damage due to broken pipes, water heater leaks, and floods, or other natural disasters. This damage may appear minor at first. If left unaddressed, the problem can escalate. It can even reach a point where you need to replace your flooring to ensure it is safe.
Watch for any signs of water-damaged floors. These signs include buckling, crowning, and cupping. If you identify any of these signs, address them right away.
You may be able to fix damaged flooring on your own. If you have concerns about repairing your damaged floors or want to replace them, get professional help. This ensures you can receive best-in-class support that will ensure your flooring enhances your property's aesthetic value.
Dents, dings, and scuffs can appear across your commercial property's walls. These problems typically don't require substantial time, energy, and resources to fix. Yet, they can hurt your property's aesthetics.
For minor wall damage, you may be able to use spackling paste and a putty knife to repair it. If you notice scuffs and fingerprints on the walls, an all-purpose cleaner may be used to remove these marks.
Meanwhile, if your commercial property has drywall, there may be instances in which you need to patch medium or large holes in the wall. In these instances, you may want to seek out professional drywall repair. This allows you to receive comprehensive assistance and verify your drywall is repaired properly.
Outdated commercial property windows can be difficult to open and close. Plus, they can have far-flung effects on your energy bills.
If you find your property's windows do not open and close correctly, it may be time for an upgrade. At this point, you can invest in energy-efficient windows that both look and perform great.
Energy-efficient windows can prevent hot or cold air from exiting your property. The windows can also provide soundproofing. They can even help you make your property more comfortable than ever before, as well as reduce your energy bills.
There is no shortage of energy-efficient window designs available, too. You can browse a wide range of energy-efficient windows and select ones that complement your property. After these windows are installed, they can simultaneously bolster your property's appearance and value.
Your commercial property's landscaping can make or break its aesthetics. If you have a stunning and expertly designed landscape, your property may stand out to property buyers. On the other hand, a poorly maintained landscape is unlikely to do you any favors as you try to draw buyers to your property.
Take care of your commercial landscape. If necessary, hire a professional landscaper who will learn about your property and determine the best course of action to maintain your landscape.
In addition, you can use plants and decorative features and hardscapes to transform your commercial property's landscaping. You can even use exterior lighting to ensure your property sparkles at night.
Prioritize these factors if you intend to sell your commercial property. In doing so, you can boost the likelihood that your property will hit the mark with potential buyers. You can make it easy for buyers to see all that your property has to offer and accelerate the selling process, too.
Take Your Commercial Property's Aesthetics to the Next Level
Selling a commercial property can be a long, arduous process. Fortunately, there are many things you can do to upgrade your property's aesthetics and speed up the sales cycle, including:
1. Establish Goals
Create goals for selling your commercial property. Determine how much time you have to sell your property and how much you want to earn from your sale. You can next figure out what steps you'll need to take to accomplish your goals.
Once you establish goals, you can decide how you want to upgrade your commercial property before you list it. Remember, each upgrade can help you differentiate your property from others on the market. If you do your part to improve your property, you can improve your chances of enjoying a fast, seamless, and profitable sales experience.
2. Learn About Your Target Audience
Consider who may want to purchase your commercial property. Then, you can identify ways to engage with potential buyers and share your property listing.
There are several options to advertise your commercial property. It can be beneficial to produce videos that showcase your property's interior and exterior. Or, you may want to use a blog, website, or social media to provide details about your property to a global audience. You can also utilize billboards to connect with local buyers.
3. Eliminate Clutter from Your Property
Don't let clutter get in the way of a lucrative commercial property sale. Conversely, clean up your property and remove unnecessary items from it. This ensures property buyers can see the full size of your space. Next, they can envision what life may be like if they purchase your property.
Keep your commercial property organized, too. For instance, if you have an office, organize documents and files across the space. Also, you can set up plants and personal items to give buyers a glimpse into how their workspace may look if they purchase your property.
4. Collect and Analyze Feedback from Property Buyers
Ask buyers for feedback, so you can get their insights into your commercial property's strengths and weaknesses. You can provide buyers with a survey or questionnaire after they view your property. And you can then evaluate this feedback and learn from it.
As you collect buyer feedback, you may notice trends and patterns in your findings. If you find common problems that buyers share about your property's aesthetics, alleviate these issues. Because the sooner you resolve these problems, the sooner you may be able to sell your property.
5. Document the Results of Your Property Selling Journey
Track your progress as you attempt to sell your commercial property. If you sell your property right away, document all aspects of the selling process. This ensures you have copies of any documentation completed during this process and can access it as needed at any time. If you are struggling to sell your property, consider aesthetic upgrades to stir up interest from buyers.
Conduct ongoing research when you sell your commercial property as well. Learn about the local and national real estate markets and monitor them regularly. This allows you to gain industry insights you can use to promote your property to the right buyers and optimize its value.
The Bottom Line on Understanding Your Commercial Property's Aesthetic Value
Your commercial property can provide an excellent investment. But, there is no guarantee your property will generate interest from buyers, particularly if it lacks visual appeal.
Account for aesthetics as you get ready to sell your commercial property. Doing so ensures your property's aesthetics can enhance its value. It can also help you speed up the selling process and receive the best price for your property.
Get started on upgrading your commercial property's aesthetics. That way, you can improve its value and enjoy a successful sales experience.