Most new real estate investors know that commercially zoned buildings can be purchased, renovated, and then rented or resold for a tidy return on investment. There is, however, a major difference between truly renovating a property and performing superficial fixes. Renovating commercial property heating and cooling systems allow property owners more bargaining power when it comes to selling, refinancing, and effectively extracting maximum value from their investments.
When compared to cosmetic renovations, commercial property heating and cooling upgrades pack considerably more value. Here are the three main ways that heating and cooling system renovations can improve your commercial real estate business.
Fetching A Higher Commercial Property Value
Although skylights and upgrade chrome bathroom fixtures can be appealing, they are mainly used to highlight otherwise fully renovated and modernized properties. Serious buyers will be most interested in learning about what climate control measures have been installed to regulate temperature in your commercial property as opposed to cosmetic upgrades. After a new commercial heating and cooling system has been installed, the property's appraised value will see an increase.
Qualifying For Commercial Loans And Collateral
It is not uncommon for commercial real estate investors to use existing properties as collateral for loans to cover everything from improvements to repairs and other operational expenses. If you have a portfolio of structurally sound and recently renovated commercial homes that are expected to sell for more than your initial investment, it will not be difficult for you to secure additional funds.
Heating and A/C upgrades to commercial properties requires contractors to consider the age of the property as well as the heating and cooling system already in place before making any changes. Commercial heating and cooling contractors also have to be aware of zoning ordinances that may necessitate building permits, making this type of renovation suitable for only highly experienced professionals. This is a fact that commercial lenders do not take lightly when considering property improvements and financing.
Attracting Clients Across New Industries
Specialized commercial spaces, such as restaurants, medical clinics, and industrial processing facilities don't just require unique floor plans, they need fully up-to-date commercial heating and cooling systems to maintain operations. The types of commercial boilers needed to maintain high water temperatures necessitates major heating and cooling related upgrades such as new air condenser installation and switching over to more modern energy sources. Commercial heating and cooling systems that regulate climates in individual spaces also requires customized ductwork for optimized airflow.
Commercial heating and cooling renovations will allow your buyers and tenants to benefit from much more than better temperature regulation. Newly renovated commercial properties generally have lower electricity costs and less maintenance, both of which are major selling points. Explore how you can refine your approach to commercial real estate investing with the assistance of a heating and cooling professional, such as those found at Mercury Tec.Share