If you have an aging commercial property, there are certain things you will need to prioritize, like plumbing, HVAC, and electrical upgrades.
Don't let your aging commercial properties get the best of you. Yes, your commercial property is a cash cow giving you passive income monthly, but if you don't take care of it and make upgrades regularly, this cash cow will turn into a black hole for money soon enough.
Some commercial property upkeep tasks cannot be delayed, no matter how much you may want to, based on your budget. Remember, being proactive actually saves you money in the long run.
Structural Integrity Is Key
The first priority you need to make when upgrading your aging commercial building is the foundation. The building's core systems need to be sound.
Having a shoddy foundation isn't only costly, it can be highly dangerous.
Critical components to inspect regularly include:
- Foundations and supports: Look for cracks, settling, and water intrusion.
- Load-bearing walls and beams: Check for signs of stress or deterioration.
- Roofs and roofing systems: Age, leaks, and weather damage can lead to costly interior repairs if ignored.
All of these inspections need to be done by a qualified engineer who can identify problems before they become major, expensive failures.
Plumbing Issues
Another issue that can cause your tenants to leave in a hurry and leave you in the hole is the plumbing. Leaky pipes, corroded fixtures, and outdated plumbing can cause water damage, mold growth, tenant complaints, and increased tenant turnover.
Experts recommend the following aging building solutions:
- Routine inspections for leaks, pressure issues, and corrosion
- Replacing old pipes and valves before failures occur
- Updating restroom and kitchen fixtures for efficiency and durability
Be proactive about these plumbing issues and save yourself dividends.
Check the Roof
The roof is one of the most neglected parts of a commercial building, and that's a real shame. The problem with your roof is that you won't actually start seeing damage until it's too late.
That's why regular inspections of your roof are absolutely crucial. Use a professional roofing company like Great Lakes Commercial Roofing, LLC to get your roof in shape again.
HVAC Systems for Comfort
Heating, Ventilation, and Air Conditioning (HVAC) systems are the most expensive element of any commercial building and need to be upgraded regularly. Make sure to inspect your HVAC system at least twice annually and conduct regular filter replacements to improve air quality.
There are energy-efficient models on the market now that can help save you hundreds, even thousands of dollars every year in heating and cooling costs.
Electrical and Fire Safety Upgrades
Another major upgrade to think about is the electrical and fire safety in older properties. They may be outdated and won't support modern loads without risk.
Overloaded circuits, worn wiring, and obsolete panels can result in fire hazards, which is very dangerous for all of your tenants. Make sure to install or upgrade fire alarms, sprinkler systems, and emergency lighting to protect your tenants even further.
Windows, Doors, and Facades
This is called the building envelope and is that part of the building that protects the interior from the exterior. It should not be neglected.
Make sure to fix or repair drafty or damaged windows to reduce heating or cooling costs. Worn doors can lead to air leaks and security concerns, and should be upgraded immediately. Sealing and insulation upgrades can also improve the inner environment and reduce utility costs.
If your commercial building is quite old, then a lot of these upgrades will need to be made bit by bit. Don't have the budget for it? Consider a different part of the building every year and upgrade over a few years, so you don't go bankrupt while upgrading your aging facade.
Pest Control and Other Environmental Hazards
This is another big thing for tenants. No one wants to see a mouse squeaking around while they are trying to enjoy their morning coffee.
Schedule regular pest inspections to ensure all these little critters aren't around for tenants' displeasure. Also, make sure to remove any outdated materials like asbestos or lead from the building, if it's especially old.
Test for environmental hazards annually. You want to avoid legal issues by taking all of these steps.
Frequently Asked Questions
Does Curb Appeal Matter for Aging Commercial Buildings?
Yes, absolutely it does. Tenants care quite a bit about the external facade and internal environment of a commercial building.
They are paying a higher rent than for a home to rent an office space and desire that office space to have a certain atmosphere to it. That's why making sure that the outside grounds and the interior decorations are up to par is extremely important.
Should You Take Tenant Feedback for Commercial Properties?
Take all tenant feedback to heart and make changes as soon as you can. Reply to all tenant feedback asap as well; don't leave them hanging. If they have taken the time to send you feedback, it means it's important to them.
You don't want to lose tenants that pay on time and are generally a pleasure to deal with, just because you ignored their feedback on something crucial.
It's also a probability that if one tenant has an issue with something, many other tenants have that issue as well. They just haven't said anything about it.
Make tenant feedback a priority as well, assigning one person on your team to deal with all feedback, good or bad. If you are doing something well, keep doing it.
Value Preservation Strategies for Commercial Properties
There is a lot you can do to ensure that your aging commercial properties don't deteriorate further and become a cash grab, rather than a source of passive income. Follow the property maintenance tips above, and you will be well on your way to having a sustainable commercial property that gives you a good cash flow for decades to come.
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