Need a long term tenant for your commercial property? Now is the time for commercial refurbishment

Attracting quality long-term tenants is key gaining the greatest return form a commercial property portfolio and not allowing it to stagnate.  These are difficult economic trading conditions for most businesses, but the property sector and that of commercial space has been hit the hardest.  With more businesses failing foul of the downturn or looking to merge premises there is an increased number of commercial properties are entering the market and landlords are finding themselves having to offer a higher standard of refurbished commercial building in order to generate interest.

Tenant’s Expectations of a Commercial Property
Companies who are starting up very conscious of keeping costs down knowing their access to extended credit has been dramatically cut but they still need the perfect property for their business.  Other businesses who have managed to keep trading but have felt the pinch are looking to relocate to cheaper buildings and reduce overheads, or rationalise their office space by merging locations.  Commercial landlords are feeling this pressure as their commercial property is vacated, or they are looking at renegotiating existing leases.

Tenants looking for a commercial space know it’s a buyers market and they are in the best position.  They know they don’t have to make do with what property is available so they are able to look closely at not only the offer, but the standard of the unit’s state of repair. Commercial landlords have to be able to offer a modern working environment with up to date fixtures and fittings and the knowledge that all alterations, repairs and redecorations have been completed to a high standard in order to increase the possibility of leasing a commercial property.  The prospective tenants will be looking for momentum and start trading as soon as possible so they do not have the time to find a commercial unit and then look to renovate and refurbish the property to a modern specification.

Many developers saw commercial property as a great opportunity and as a result, many have over stretched themselves leaving a vast amount of empty new build commercial property on the market.  Landlords are finding that they have to compete with new build units, all of which will have up to date communication networks, modern energy efficient heating and lighting systems and increased security measures.

Maximise Your Rental Potential
The increased competition has driven rental values down so landlords are looking for ways to enhance the value of their properties.  Tenants understand the commercial property market is volatile and will use any substandard condition as way to a lower rent or a reduced service charge.  Landlords are looking to refurbishment as way to bring their properties up to date not only as way to attract a tenant, but also to conserve the rental value of their portfolio.

Ongoing Desirability
Commercial refurbishment cannot only affect the immediate value, it can be felt at the lease renewal or review stage.  One growth area in commercial property has been the rise in companies advising existing tenants on triggering break options and negotiations. These companies are having a greater impact on landlords who have not invested in refurbishing their portfolio and will find themselves in the unwanted position of having to drop their rents in order to retain tenants.

The Time is Right for Refurbishment
Understandably, landlords have been reluctant, or unable to undertake a commercial refurbishment project over the last few years due to prohibitive labour and material costs.  Also, with their properties in constant use and there has been no need to look closely at modernising some properties, instead settling on the work done through the obligations from their tenants as part of the agreed schedule of condition.

However, many commercial refurbishment specialists are now able to offer an attractive option that takes advantage of lower VAT costs and their need to retain their skilled contractors during leaner months.   This is allowing commercial landlords to invest in poor performing areas of their portfolio by offering a commercial property that meets the needs of their existing tenants or attracting a quality long term tenant to a vacated property.  A commercial refurbishment specialist such as TWP Designs, http://www.twp-designs.co.uk/services/commercial-refurbishment will offer a variety of options and ideas to help a commercial landlord to transform a property. Commercial refurbishment specialists will be able to offer ideas on how a space could be laid out more efficiently, how a heating system could be renovated, or a light system renewed.  The measures needed are often the small details and the quality of the finish, but a good commercial refurbishment specialist will also look at the bigger picture and see the potential of a commercial space and work with the landlord to ensure thay have a property that will attract and retail tenants.