How To Increase The Valuation Of Your Commercial Real Estate Today?
If you have purchased commercial real estate, you have probably done it for the purpose of renting it, leasing it, or selling it at a profit in the future. One of the things that is a must before you rent, lease, or sell your property is to get an appraisal. However, this is where the problem lies. Many commercial real estate property owners feel like appraisals don’t give their property the fair valuation that really considers the true potential of your commercial real estate and its full earning potential in the future. So, how can you improve the value of your commercial real estate today?
There are many ways you can do it by improving your property and investing in upgrading your property, which will cost a considerable sum of money. However, there is another way where you can get the benefits of increased valuation without having to actually spend all the money right now on upgrading your property. Yes, that is possible, and the way to do it is to make an outparcel. What’s an outparcel? Let’s find out!
What Is An Outparcel?
An outparcel is a site on your commercial property where you plan to build another business in the future, such as a restaurant, drive-thru, pharmacy, or retail store. An outparcel site is generally located near the outskirts of your property, and it works in increasing the value of your overall commercial property. The reason why an outparcel improves your property value is that it increases the future potential of your property to generate even more income. And the reason for placing it near the outskirts of your property is for practical reasons such as different operational times, separate space to help the new business grow to its full potential, or it needs more space to function, such as a drive-thru. Now that you know the basics of an outparcel let’s learn what you need to know before you can build your own outparcel in your commercial real estate.
What You Should Know Before Building Your Own Outparcel On Your Commercial Real Estate
● Local Regulations
The laws regarding outparcel vary from place to place. So, before you build your pad site, you need to understand and know the laws in your particular region to ensure you are not building an illegal pad site, which could severely detriment the value and reputation of your property.
● Location on Property
In a similar fashion to the previous point, the location of your outparcel site is also important to figure out. This is because the rules and zoning permits need to be achieved before you can build your pad site. So, it directly ties in with local rules and regulations again. You need to figure out the exact details of what is allowed and not allowed to choose the right location for your outparcel in order to attract new tenants and businesses.
So, that is how you can improve the value of your commercial real estate today. The best thing about an outparcel is that there is no immediate investment on your end, and it increases the income potential of your property. However, staying in touch with the local authorities to understand the legalities is crucial for ensuring the success of your outparcel.