The recent RCA Report had an article entitled, "Value -- outside the box". (If you are a member of the REALTORS Commercial Alliance (RCA), part of the NAR, you received a hardcopy. If you are not a member of RCA and actively involved with commercial real estate brokerage, I encourage you to join.)
It states that besides updating the lobby and amenities or upping the rents to increase asset value it has identified three creative solutions to adding value outside of the box...
1. Raising the Roof increases height and usage area of existing structures at lower costs than new construction and within shorter time frames. There is also environmental benefits due to less debris.
2. Making it Greener (and in compliance with LEED standards) gives you a competitive advantage at minimal or virtually no incremental costs and makes it more attractive for mainstream lenders and investors, as well as tenants.
3. Keeping it Connected by establishing in-building wireless connectivity, including hard to access areas like underground garages, is a desired amenity that not only benefits the tenants, but the building operations as well. The security and safety benefits are further enhanced when the wireless system is connected to a local public safety network and easy installation of video cameras in trouble areas. It also serves as a back-up when hardwiring is severed. There are additional operation cost savings when using wireless devices and systems that enable energy-savings. Some of those that have made that investment are experiencing less vacancies at top-market rents.
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