Commercial property owners have had a hard time over the past few years as demand for office space has dropped. Many businesses have closed, and others have sought to reduce the size of their premises due to increased running costs and less need for space due to more homeworking.
The demand for retail space has also suffered as factors such as interest rate rises have left consumers with less money to spend on goods.
So, what can you do if you have invested in commercial property?
Think outside the box
It’s easy to think how you have always thought, but looking at your premises from a different angle could help bring important income. Maybe your premises have always been filled by large companies. What if you put in divisions to make the space more suitable for smaller ones instead? What if you could transform your office block into an apartment block?
Think long term
Things are cyclical, and just because the commercial rental market is suffering now does not mean it always will. If you have the funds available, you might be able to pick up additional properties for a bargain price as those who need an instant return look to escape the market. While these investments may take several years to become fruitful, they could prove a rich investment in the long term.
Invest to stand out
It might seem counter-intuitive to invest more into a property you struggle to fill with tenants. However, if, by doing so, you make it a more attractive proposition than the alternatives, you may win new tenants. It does not necessarily need to be about making it more luxurious. Making it more environmentally friendly could be more important to some potential tenants.
Whatever you consider, it is crucial to understand the legal implications of any changes you are considering before proceeding.