If you’re looking to add value to your commercial property by renting out unused spaces then consider the following points raised. This strategy may not be new to some, but if you haven’t explored this avenue yet, it’s time to consider how these underutilised areas can generate additional income and increase the property’s overall value.
Identifying Unused Spaces
Start by evaluating your property to identify any spaces that are not currently generating revenue. This could include the sides of the building, unused parking spots, garden areas, basements, or even rooftop spaces. These areas might seem insignificant, but they offer opportunities to create value.
Billboard Advertising
One of the simplest ways to monetize unused space is by leasing it for billboard advertising. Billboards are a common sight on commercial properties, particularly in areas with high footfall or vehicle traffic. The rent from billboards can start at £3,000 per year, and higher traffic can significantly increase this amount.
To find potential tenants, start by observing existing billboards in your area. Use Google Street View to identify the brands or companies advertising on those billboards, and then reach out to them. It’s a straightforward process—just let them know you have space available and see if they’re interested.
InPost Lockers
Another option is to install InPost lockers, which provide a secure place for customers to pick up and drop off parcels. While the income from these lockers isn’t massive—typically between £1,000 to £3,000 per year—it’s a low-effort way to generate additional revenue. InPost generally requires a long-term lease of 15-16 years, as they invest in installing the lockers and need to recoup their costs.
Electric Vehicle Charging Stations
With the rise of electric vehicles, there’s growing demand for charging stations. If your property includes parking spaces, consider leasing them to companies that install electric vehicle (EV) chargers. These companies usually require long leases (15-20 years), as the installation costs are high, and they need time to see a return on their investment.
Identifying potential tenants is simple—just observe the brands on existing charging stations in your area and reach out to them. The process is similar to finding billboard tenants, requiring just a few emails to initiate the conversation.
Alternative Charging Solutions
If your property doesn’t have space for full-sized EV chargers, consider other charging options like electric bike or scooter charging stations, or even phone charging kiosks. These can be placed in smaller spaces and offer a modern amenity that attracts tenants and customers alike. Companies specialising in these services often install and maintain the equipment themselves, providing you with a low-maintenance income stream.
Storage Solutions
Basements or other unused interior spaces can be converted into storage units. Businesses, especially local pubs, or even individuals often need extra storage. While the rent for storage space might not match that of prime commercial space, it’s still a viable way to monetize otherwise wasted space. Ensure that you set clear guidelines on what can be stored to manage risk and maintain safety standards.
Innovative Uses for Rooftops and Gardens
Rooftops can be an untapped resource for generating additional income. Consider leasing roof space for solar panels. Not only can this provide a source of green energy, but you can also benefit from government incentives and sell excess electricity back to the grid.
Garden spaces can be rented out for community gardens, pop-up shops, or even outdoor advertising. These uses are particularly appealing in urban areas where green space is limited.
Data Centers and Tech Installations
In the digital age, there’s also increasing demand for data storage and server locations. If your property includes secure, climate-controlled spaces, consider leasing these areas for data centers or tech installations. These tenants often seek long-term leases due to the complexity and cost of setting up their equipment.
Maximising Property Value
By utilising these strategies, you can increase your property’s rental income and overall value. Small improvements, like installing billboards or EV chargers, might seem modest at first, but they can contribute significantly to your property’s financial performance over time.
Every additional revenue stream, no matter how small, adds value to your property. Long-term leases, such as those required for billboards or EV charging stations, not only provide a steady income but also increase the property’s valuation. For instance, an additional income of £3,000 per year over 15 years could increase your property’s value by £45,000 or more.
Take Action
So, why not start today? Walk around your property and identify areas that could be put to better use. Look at other commercial properties for inspiration and see how they are utilising their spaces. You may be surprised at the untapped potential of your own property.
Send out those emails, make those calls, and start negotiating. The extra income you generate could make a significant difference to your property’s value, turning unused space into a profitable asset.
In conclusion, renting out unused spaces is a smart way to enhance the value of your commercial property. With some creativity and a bit of legwork, you can transform these areas into valuable income streams, benefiting both your bottom line and the overall appeal of your property.
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