There’s no shortage of reasons why people underestimate the value of their properties. In some cases, they’re simply dealing with outdated information. You might know what your property was worth a decade ago, when you last had it valued, but that figure might bear little resemblance to its value today.
Some people, especially commercial property owners, underestimate a property’s worth because they focus on the wrong aspects. Even properties that are rundown can be worth a considerable sum because of other features, such as their location.
In this post, we’ll outline some common reasons why some properties, especially commercial properties, tend to be undervalued by owners. In some cases, even properties that you can’t imagine anyone buying could quickly be snapped up if they have one of the features outlined below.
It Has Space for Storage
Have a commercial property that has additional space, and don’t know what to do with it? Then you might just want to take a look at the expected market growth for self-storage businesses. With self-storage demand on the rise, businesses with excess space in easily accessible locations have a great opportunity to put the building to work and begin earning a passive income. Another option is to rent that part of your property to an existing self-storage business, which is another effective way to earn an income.
It Has a Cell Tower
The world is becoming more and more connected, and cell towers play a big role in making that happen. Properties with an existing cell tower are valuable in a couple of different ways. If there’s an existing wireless lease, then there will be cell tower real estate investors willing to buy. If there’s not an existing lease, then reactivation — and getting paid — may be possible, though that’s usually only the case if the carrier abandons the tower and it falls into your hands.
It Has More Solar Panels Than It Needs
Installing solar panels can be good for business in a couple of ways. The most obvious way is that it’s good for the planet, and customers are increasingly likely to favor giving their money to brands that show concern for the environment. The second is that it may be possible to sell excess power produced via the solar panels back to the grid. This varies from one region to the next, so it’s best to search online for ‘[your region] solar feed-in tariffs.’
It Has Potential Office Space
More people are working remotely than ever before, but, in many cases, they’re not doing that work from home — instead, they’re doing it from a co-working space. If you have excess space at your property, then it may be possible to turn it into an office space for use by other companies and freelancers. This is a great way not just to bolster income, but also to inject fresh energy into your space. One of the underrated aspects of having a coworking space is that it can be a galvanizing force that benefits the underlying business.
Featured image credit: Pexels – CC0 Licence
