Guest Article as published in The Q Review Magazine 2020 Winter Edition. Follow the link to Subscribe and receive your FREE copy each quarter!
Overcoming the Post-Pandemic Commercial Property Market Downturn
WA commercial property owners worried about a glut in the market sparked by the COVID-19 pandemic are turning their attention to building refurbishments.
Commercial Property Improvements’ Robert Zupanovich says “Mum and dad investors with empty commercial properties including smaller offices, factories and warehouses are concerned about not being able to rent their spaces in the wake of the COVID-19 economic fallout.”
“Owners are worried about estimates that the value of vacant commercial and industrial properties has nosedived up to 20 percent – and they have real reason to be concerned because COVID-19 has thrown the commercial real estate sector into uncharted territory,” said Mr Zupanovich.
“It’s a very competitive market in which to secure a tenant because there’s a lot of choice, less people looking to buy or lease, and a lot of general uncertainty caused by business closures and rising unemployment levels.
“Many companies will be rethinking their spaces and considering if they need as much room or a different type of property as working from home becomes the norm.”
Mr Zupanovich said his company Commercial Property Improvements (“CPI”) was well-placed to help commercial spaces stand out.
“Good quality buildings with strong leases are unlikely to be impacted by COVID-19 but neglected buildings, offices or warehouses will likely struggle” he said.
“External and internal refurbishments seem to be very much on the minds of investors who have vacant properties in a bid to attract tenants at preCOVID-19 rates and retain the property’s value to avoid running into issues with their banks.
“We’re even fielding calls from landlords considering overhauling their properties to keep current tenants happy and avoid them demanding lower rents.”
- Upgrading the building façade
- Air-conditioning upgrade
- Improving energy efficiency
- Improving security
- Toilet/bathroom upgrades
- Updating building entry
- Improve kitchen facilities
- Disability access
- Improve and/or increase car parking
REFURBISHMENTS AT A GLANCE
- Have the property professionally assessed
- Prioritise recommended upgrades to attract a tenant or buyer
- Consider adding new features & amenities
- Ensure the desired changes comply with the latest regulations
- Consider if a change-of-use or an extension for the property will be helpful
- Talk to us about how to work around existing tenants
- Let the experts handle the refurbishment for you, within your budget.