The commercial market is finally truly recovering from the economic downturn, and this means that the property investment world is once again changing. No longer do investors flip properties as quick as they can in order to maximize their properties. Rather, they invest in their refurbishment and turn them into desirable properties that can offer long term leases to other companies. This means that investing in refurbishment is the right thing to do right now, but that doesn't mean every investment is a good one.
Understanding Refurbishments
If you are interested in investing in a commercial office refurbishment, it is very important that you don't go overboard.
Understanding Refurbishments
If you are interested in investing in a commercial office refurbishment, it is very important that you don't go overboard.
Not every business needs a top-spec office with deep floorplates and full air-conditioning, but in this design-conscious world many occupiers are looking for space that communicates positive messages about their organisation and its culture, preferably in a good location and at a competitive rent.
It is all too easy to go for the latest designs and top notch technology, but this means that you have to make a significant financial commitment as well. Additionally, in order to recover your investment and see a real return on investment, this would mean raising rent prices. In turn, this makes it more difficult to find tenants. Hence, before you start pumping money into a refurbishment, you should first think about what you want to achieve.
Working with a Contractor
If you are going to invest in your commercial property, you need to make sure that you find an excellent contractor to work on this project with you. Take some time to look into the different contractors that are out there and look for details that suit your particular needs. For instance, some contractors focus on sustainability while others focus on specific design styles, and so on. Together with your contractor, you can discuss what your property would most benefit from in terms of refurbishment and you can then work on a budget and time scale from there.
Understanding Returns
You also have to think about how quickly you want to see a return on investment. Certain locations do much better than others, which means that if your property is in one of those locations, it could be beneficial to invest more in it as well. However, if you are in a low performing area, then keeping your budget low may be a better idea. Currently, the top area for the best return on investment after commercial refurbishment is London.
Working with a Contractor
If you are going to invest in your commercial property, you need to make sure that you find an excellent contractor to work on this project with you. Take some time to look into the different contractors that are out there and look for details that suit your particular needs. For instance, some contractors focus on sustainability while others focus on specific design styles, and so on. Together with your contractor, you can discuss what your property would most benefit from in terms of refurbishment and you can then work on a budget and time scale from there.
Understanding Returns
You also have to think about how quickly you want to see a return on investment. Certain locations do much better than others, which means that if your property is in one of those locations, it could be beneficial to invest more in it as well. However, if you are in a low performing area, then keeping your budget low may be a better idea. Currently, the top area for the best return on investment after commercial refurbishment is London.
London offers the best returns for investors seeking to boost the performance and returns of their aging office assets through major refurbishment, according to a new report from ARCADIS, the leading global natural and built asset design and consultancy firm.
The same report also indicated that Madrid was the best place to do smaller refurbishments while seeing large returns on investment. Other good cities for large-scale refurbishments include Warsaw, Milan, Frankfurt and Amsterdam. These figures take into consideration major refurbishments, which means the life of the property could be extended by as much as 20 years. Of course, it is important to understand that the exact area of the city in which your property is located is also of importance.
Investing in a commercial office refurbishment is a major undertaking and you have to consider your options very carefully. You need to consider what you want to achieve for your property and for your own finances, and what needs to be done to get those two elements together. In getting that right, your contractor is going to be your best friend and you must ensure the lines of communication between you and them stay open at all times.
Investing in a commercial office refurbishment is a major undertaking and you have to consider your options very carefully. You need to consider what you want to achieve for your property and for your own finances, and what needs to be done to get those two elements together. In getting that right, your contractor is going to be your best friend and you must ensure the lines of communication between you and them stay open at all times.