We know that as a commercial real estate investor, you’re always looking for ways to increase your profits, whether that’s through higher occupancy rates, lower expenses, or increased lease rates. But with so many different strategies out there, it can be hard to know where to focus your resources and efforts.
Our experience managing commercial rental properties has given us a lot of insight, and we’ve watched what the most successful investors do to boost their profits. Today, we’re sharing some proven strategies so you can maximize your return on those commercial investment properties.
Increase Occupancy Rates in High Desert Commercial Rental Spaces
One of the most immediate ways to boost profits is to increase the number of tenants in your building. This can be accomplished through targeted marketing campaigns, offering incentives for new tenants, and building a strong reputation for your property or building. By keeping your space well-maintained and providing exceptional customer service, you’ll make your property more attractive to prospective tenants, which ensures that your occupancy rates stay high.
Reduce Commercial Property Expenses
Boosting profits will always require you to keep expenses low. This can be achieved by:
- Negotiating lower rates with vendors
- Implementing energy-efficient upgrades
- Investing in preventative maintenance
By taking a proactive approach to managing your expenses, you’ll be able to keep more money in your business and ensure that your property remains profitable over the long-term.
Raise Those Rental Rates and Negotiate Lease Terms
Increase the rental rates for your existing tenants when the market and your lease agreement allows it. Conduct market research to determine the going rate for comparable properties in your area. You can increase your rents by providing extra amenities or services that justify a higher lease rate as well. It’s important to keep in mind that increasing lease rates too quickly or too aggressively can lead to tenant turnover, so always strike a balance that makes sense for both you and your tenants.
Invest in Capital Improvements
Another option for maximizing what you earn on your High Desert commercial property is to invest in capital improvements that attract new tenants or improve the overall quality of your building. This could include:
- Renovations to common areas
- Repaving of parking lots
- Adding new amenities (such as a fitness center or conference room)
- Upgrading your building’s technology infrastructure
While these investments can be costly upfront, they can yield significant returns over the long-term through increased occupancy rates and higher lease rates. Your property will be in higher demand as well.
High Desert Commercial Property Management
Finally, one of the best ways to boost profits is to hire a professional property management company to handle the day-to-day operations of your building, including leasing and repairs and improvements. By outsourcing tasks like maintenance, tenant screening, and rent collection, you’ll free up your time and energy to focus on higher-level strategic decisions. Additionally, a professional property management company can often negotiate better rates with vendors and suppliers, which can help keep your expenses low and your profits high.
While there are many different strategies for boosting profits in commercial real estate, the most effective approach is usually a combination of multiple tactics. By focusing on increasing occupancy rates, reducing expenses, increasing lease rates, investing in capital improvements, and hiring a professional property management company, you’ll be well-positioned to increase your profitability.
We’d love to talk more about your specific commercial property. Please contact us at Preston-Lee Management Company. We’ve been providing property management services in the High Desert for more than 30 years.
