To increase the value of your commercial property, it is necessary to first establish where your property sits in the market place relative to other similar properties, and how it could be elevated in the ranking of quality, efficiency and convenience.

A ‘switched on’ commercial property owners/investors will submit his property to a regular ‘value audit’ process which the owner can conduct himself or, preferably, with the assistance of the property professionals in his team.

Here are some of the factors which could form the basis of such regular value audits or reviews:

1. Highest And Best Legal Use. There are a number of factors that can influence highest and best legal use. These include movements in population density, changes in zoning, new developments in your locality, and changes in transport infrastructure, etc.

2. Maximize Gross Building Area. The original construction may not have encompassed the full potential of the site or changes in council policy may have increased the potential of the site.

3. Maximize Net Lettable Area. Design and construction techniques are constantly improving and some firms specialize in these areas. There is an initial cost, but any additional net lettable area gained will continue to yield additional income on into the future.

4. Suite Amalgamations. In a multi-tenant property, well planned suite amalgamations can provide larger spaces for larger, quality tenants. Such moves can result in higher customer flow to the locality, with subsequent greater demand for rental space and increased rentals.

5. Highest Quality Tenants. Tenants are in constant competition with one another for customers and new, aggressive leaders emerge constantly. ‘Switched on’ property owners and/or managers identify and target such operators constantly.

6. Lowest Operating Costs. Many commercial tenants pay base rent plus operating costs and the total of these costs are governed by the market. Less operating costs can mean more rent to the landlord/building owner.

7. Maximum Use Of Signage. Tenants need to have high profile and visibility for their business operations – potential customers need to be guided to the tenant business. High customer throughput supports higher rent potential.

8. Best Access For Both Road And Pedestrian Traffic. A commercial property owner has a vital interest in planning decisions that can result in improving or hindering smooth movement of potential customers to and around commercial premises.

9. Marketing And Promotion. This is particularly relevant if your property is part of a

multi-property complex such as a homemaker centre where there may be a common interest in drawing customer traffic through the complex. This raises the profile of your premises in the eyes of potential quality tenants.

10. Quality External Appearance. As with virtually any property, a smart external appearance will enhance value.

11. Legal Use Of Public Space. Good examples of profitable use of public space can be seen in virtually any café precinct where council permission has been granted (for a negotiated fee) for tenant tables and chairs to be placed in public areas allowing for an expanded trading area for the tenant. This can be reflected in an increased level of rent.

12. Low Cost Additional Tenant Facilities. An example frequently seen is the provision of metal storage facilities at the rear of trading premises. This is a low cost item for a landlord, but can be a valuable item for a tenant if it frees up internal trading space which is reflected in increased rental.

13. Top Quality Management. The quality of management of a property is a big step towards contented tenants – and contented tenants pay better rents.

14. Lobby For Beneficial Changes. Councils can be influenced by well researched and well presented representations. Beneficial changes can include changes to local zonings, building height and density, improved traffic flow and street beautification projects.