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10 ways to unlock profit in commercial property investment

In commercial property investment, success hinges on a combination of strategy, insight, and innovation. To maximise your financial returns and build a thriving portfolio, you need a comprehensive plan that encompasses every facet of your investments. This guide is your roadmap to achieving just that.

Let's explore ten powerful “COMMERCIAL” strategies that will transform the way you approach property investment.

CASH FLOW: The Financial Foundation

First and foremost, don’t venture into property investment blindly. Build a detailed cash flow forecast with your projected costs and income. This will be your compass in this complex landscape, allowing you to see the impact of your choices and actions, and enabling informed decision-making.

OUTSOURCE: Time is Precious

Your time is a valuable asset. While outsourcing property management may add to your expenses, it frees you to focus on the big picture. Instead of chasing rent arrears, you can dedicate your energy to securing new leases and exploring fresh investment opportunities.

MAXIMISE REVENUE: Beyond Lettable Units

The ultimate revenue boost comes from filling all lettable units with high-paying tenants. But have you considered the untapped potential between those units? Explore innovative revenue streams, from renting out space for a coffee company to licensing your spare parking spaces.

MINIMISE EXPENSES: Pruning for Profit

By scrutinising your expenses over the past year, you can pinpoint costs that can be eliminated, expenses that are 'nice to have,' and essential costs. Put red lines through anything which can be cut and highlight bills that you could negotiate or find a different supplier.

EXIT: Timing is Everything

For a cash injection, selling your property can be a strategic move. Optimise your exit price and timing by assessing your cash flow and targeting the ideal vacancy and WAULT (Weighted Average Unexpired Lease Term). Use experienced agents to elevate your sales strategy.

REFINANCE: Unlock Equity

Not the optimum time to sell? Refinance! This avenue allows you to extract equity that you can invest elsewhere and diversify your portfolio. If you’ve derisked the asset then you could also get better terms and reduce your interest payments.

COLLABORATE: A Network of Opportunities

The property industry teems with talented individuals. Networking and collaborating can unlock opportunities for fresh offerings and enhanced tenant experiences. You might end up hosting events or supporting charitable causes, improving your image and satisfaction levels, as well as your bottom line.

INNOVATE: Thinking Beyond Norms

Thinking outside the box is crucial. Explore innovative ways to monetise every aspect of your building, from solar panels on the roof to advertising billboards in the car park.

ANALYSE: Tailoring your Strategy

Business plans are not one-size-fits-all. Experiment with different options before finalising your strategy. Consider the impact of offering longer rent-free periods for higher rents and investing in improvements that enhance tenant satisfaction.

LEARN: Building on Experience

Mistakes and successes are part of the journey. The key is to learn from each experience. Writing down your observations and reflecting on your decisions will help you evolve and grow as an investor.

The strategies outlined here encompass a full spectrum of considerations, from financial forecasting to creative innovation. By implementing these ideas, you can unlock more profit in your commercial property investments.

So, what are you waiting for?

Thank you so much for reading, click here to download a printable version of this guide. If this resonates with you then please get in touch, or sign up for our LinkedIn newsletter "Let's Excel in Property" or join our mailing list for more.

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