If you’re preparing an office for sale as a landlord or an owner-occupier, it makes sense to take reasonable steps to maximise the price you can achieve.
To help you boost your return on investment, we have put together an action plan, complete with priorities and costings, to help you make improvements that fit your timescale and budget. We also run through the various factors that affect commercial property value and why.
Preparing an office for sale
There are several steps you can take before listing your office for sale to widen its appeal and boost its value.
First impressions count
In terms of quick wins, improving the curb appeal and presentation of internal areas is a relatively low-cost approach that can have a significant impact on value and the speed of sale.
- Internally, a deep clean and thorough declutter will enhance the space, while a fresh coat of neutral-coloured paint will make the rooms appear larger and more welcoming. Repairing any visible wear and tear, such as damaged fixtures, faulty lights, stained ceilings and worn carpets, will also show that the office has been well maintained.
- When it comes to the outside of the building, giving the external facade a new coat of paint, tidying up green areas, pathways and car parks, and updating the signage will make a positive and lasting first impression.
Enhance the flexibility
These days, many modern businesses want flexible workspaces that enable them to work in different ways. Removing partition walls to create open plan areas, meeting rooms and breakout spaces can increase the flexibility of the office and make it suitable for a broader range of buyers.
However, if you are aiming to create a more agile workspace, make sure you have the WiFi infrastructure in place to support it.
Invest in energy efficiency upgrades
Offices, especially in older buildings, are notoriously energy inefficient, with poor building design and a lack of insulation contributing to high energy costs.
Making a few relatively inexpensive changes, such as improving the insulation, switching to energy-efficient lighting and potentially updating the glazing, can boost the EPC rating, reduce the running costs and make the property more attractive.
Maximise financial performance
A key factor that affects commercial property values, certainly among investors, is the income-generating potential. Investors look for consistent rental income with minimal void periods and a solid yield.
When selling to investors, securing a long-term, reliable tenant before putting the property on the market can boost its value significantly. There should also be provisions in the lease to conduct rent reviews so the buyer can ensure the rates will keep pace with the open market.
If you are selling the property with an existing tenant, make sure the lease is structured favourably to suit a buyer, and consider your options for increasing the rent if it is below market value.
Market the office professionally
Another office building value improvement tip is to think carefully about how you position the property for sale. The first step is to get a professional valuation from a RICS-registered valuer. They will provide an accurate assessment based on the office’s location, condition and potential rental income, as well as current market trends.
Once you have a valuation, you can then consider the right buyer pool to target, whether it’s owner-occupiers, investors or developers. An experienced commercial property agent will advise you based on economic conditions and market trends, and then package and pitch the office accordingly. They will also consider whether a potential change of use, for example, a residential conversion or switch to mixed-use, could significantly increase its value.
They’ll then create the high-quality marketing materials, including professional photographs, floor plans and detailed listings, that attract serious buyers.
How to increase office property value - an action plan
Here is an actionable office investment enhancement strategy that you can implement to boost your property’s value. It starts with the low-cost, quick wins, so you can make a plan that fits your budget and timescale.
Priority one: Low-cost cosmetic fixes
These are the simple fixes you can make with estimated costings. The costs will vary considerably depending on the size and age of the building.
- Cleaning, decluttering and repainting walls in neutral tones - around £5 to £10 per square foot
- Upgrading LED lighting - £20 to £40 per fixture
- Minor repairs to doors, windows, ceilings and fixtures - up to £5,000
- New signage and landscaping - around £3,000
Priority two: Significant value boosters
Depending on your circumstances, your next priority may be the changes you can make that add significant value. These may be more expensive and take longer than the cosmetic fixes, but they can provide a more substantial uplift.
- Reviewing tenancy agreements if you have existing tenants
- Securing new tenants on long-term and favourable leases
- Obtaining advice and planning for alternative uses
Priority three: Optional value adds
Depending on the market and the advice you receive from your agent, there are several other changes you can make to unlock higher prices.
- Removing partitions and creating an open-plan layout - up to £10,000
- EPC upgrades such as insulation and glazing - up to £30,000
- Installing EV charge points - from £1,500 per charger
- Secure bike storage - between £5,000 and £10,000
- Upgrading broadband and WiFi infrastructure - up to £10,000
- Upgrading the heating system - up to £20,000
- Installing solar panels - up to £20,000
Expert assistance when preparing your office for sale
Whatever your office sale ambitions or timeline, at Eddisons, we offer a comprehensive range of office property services to help you realise the true value of your assets. Our commercial property agents provide data-driven advice and practical support to guide you throughout the sales process. We also have lease advisory teams, property managers and experienced valuers to give you confidence and clarity at every stage.
Find out more about selling or letting your property with Eddisons and get in touch to discuss your goals with our team.
