Older office spaces are having to do more than just drop rents to retain tenants. New office buildings are more efficient, reducing utilities and offering real estate tax incentives. Updated spaces are equipped to handle modern technology for the changing workforce. And, modern buildings offer more amenities and boost employee morale, increasing productivity and helping businesses hire and keep the best talent.
How Can Older Spaces Stay Competitive?
Making strategic investments in your building can help improve Class C buildings to Class B buildings, increasing rents and reducing vacancies over time.
National Real Estate Investor commented on strategies for repurposing aging buildings, “What we’re really talking about is how to get smarter about an asset. How do you find value that you might not know is there? Making the necessary improvements could translate into hundreds of millions of additional dollars in rental revenue per year. So, there is huge potential if owners are willing to rethink what these assets are and shift their perspective goal market.”
- Curb Appeal – Consider giving the entrance of your building a facelift. This is what people drive by every day. Modernizing your entryway and lobby helps attract new foot traffic. Even small updates, like a new address plate or landscaping can make a big impact on appearances.
- Repurposing – Take note of your vacancy patterns. Is it the first 3 floors? Repurpose misused space to cater to your tenants or the surrounding area. If you’re downtown by the ballpark, add a garage. Consider a gym or retail space convenient for employees in and around your building.
- Entry Points – Convenience, safety and aesthetics. Investing in the wellbeing of your tenants helps build loyalty. Security improvements like cameras or lights are minor investments that can increase the value of your space and reduce risk. Think about the tenant experience. Where are the majority of people coming in? Does it make sense to restructure to improve flow?
- Retrofitting Utilities – Taking steps to improve efficiencies can payoff twofold. As a building owner or manager, you can avoid costly repairs down the road, while helping tenants save on their utilities.
The Intelica Asset Management Group can help maximize your building’s potential through commercial real estate strategic planning, building maintenance and engineering management, tenant retention programs and sustainability consulting. Talk to our team today.