How are Canadian Retail Property Investors Boosting Their Returns?
What can Canadian retail property investors do to elevate their returns now?
Commercial property returns in Alberta and specifically Edmonton are already very healthy. However, it always pays to get ahead of the curve and maximize margins while the opportunity to get ahead is there.
Here are nine ways retail property investors in Canada can improve on their annual and lifetime returns;
1. Curb Appeal
Improving a shopping plaza’s curb appeal, including signage can go a long way to attracting new tenants, earning loyalty from existing tenants and boosting traffic.
2. Parking Spaces
Having a substantial amount of parking spaces and a well-maintained parking lot can encourage customers to continue shopping at the plaza. It can also maintain a positive flow within the centre.
3. Increase Community
Make efforts to build community around retail centers to generate traffic, increase loyalty among local residents and retain prominent anchor tenants.
4. Energy Efficient Improvements
Going green is now expected of many companies. Healthier and more environmentally-friendly spaces not only draw positive attention and boost NOI, it can also enhance employee productivity resulting in compounding improvements over time.
5. Reduce Debt Service Cost
Consider refinancing, buying back shares, getting a better deal on insurance and investigate other ways of reducing holding costs to increase investment yields.
6. Use Technology to Reduce Labour
Technology can be used to reduce labour requirements at all levels when it comes to retail properties. Take advantage of any technology that can help you improve efficiency and maximize your returns.
7. Better Property Management
Property management companies have never been able to add more value than they can today. Professional third party property managers can help maintain daily issues and achieve optimal investment returns.
8. Better Leases
There are many ways to improve the performance of a retail property. One way to achieve this is through smarter leases, which applies to both new leasing activity and negotiating renewals. Consider which clauses and elements could elevate income, reduce expenses and minimize risk.
9. Expand Commercial Real Estate Portfolios
Now is an incredible time for expanding Canadian real estate portfolios. Demand for retail space, properties, interest rates and revenues are only expected to keep heading up. Those with inactive capital or other underperforming investments should consider how to leverage them into profitable commercial investments now.