Adam Harley, Valuations Partner at Knight Frank in Newcastle, shares his expertise.
In a challenging market with strandedassets on the rise, commercial property owners must think strategically to protect and enhance the value of their assets. Whether facing reduced demand, tighter financing, rising minimum energy performance ratings, or evolving occupier expectations, the key lies in future-proofing buildings.
Here’s how to maximise your property’s appeal and long-term value through targeted improvements that attract strong occupiers and investors alike.
Think Ahead
Taking a strategic view of property assets and planning well in advance for any upcoming tenant exits or breaks in a lease is crucial to avoid or reduce void periods.
Enhance Presentation
The visual and experiential quality of a building is often a deciding factor for potential tenants and investors. Enhancing the appearance and presentation of your asset should therefore be a top priority.
Simple measures such as improving soft landscaping, having outdoor seating areas and well-maintained communal areas can dramatically increase the perceived quality of a property. Adding electric vehicle (EV) charge points not only appeals to modern occupiers but also signals environmental responsibility.
Maximise Use of Space
Today’s occupiers expect environments that foster collaboration, creativity and wellbeing. Introducing breakout areas, new amenities and collaborative workspaces can transform underused space.
This approach improves day-to-day functionality and can increase net effective rents, as occupiers see greater value in space that supports modern working practices. More than this, an efficiently designed layout can future-proof the building for evolving workplace trends, reducing the likelihood of obsolescence.
Flexibility is now one of the most sought after features in commercial real estate. Introducing modular layouts, movable partition walls, and multi-use areas can extend the life cycle of the accommodation. This adaptability allows owners to cater to a diverse range of tenants, ensuring consistent occupancy and income stability.
Upgrade M&E
Upgrading a building’s mechanical and electrical (M&E) systems is a strategic investment. Enhanced systems can reduce operational costs, improve energy efficiency and support compliance.
Modern M&E installations, such as intelligent lighting, smart metering and efficient HVAC systems contribute to lower carbon footprints and improved occupant comfort. In a market increasingly driven by ESG (Environmental, Social, and Governance) considerations, these upgrades can directly influence investment appeal and long-term value retention.
Stand Out in the Market
To make an asset stand out, consider a design programme that targets specific, high-growth sectors such as technology and digital innovation.
By tailoring buildings to meet sectorspecific needs e.g. installing smart technology, ample power and data capacity, collaborative zones or flexible lab-style spaces, landlords can position their properties as fit-for-purpose hubs, attracting tenants with strong covenants and growth potential.
Embrace the Sustainability Agenda
A refurbishment centred around sustainable design and operation can unlock stronger tenant demand, particularly from occupiers required to demonstrate environmental responsibility.
Green building credentials can also appeal to institutional investors, who increasingly prioritise ESG-compliant assets.
Collaborate with Experts
While these measures promise significant returns, they often require substantial upfront capital investment. To ensure viability and return on investment, property owners should collaborate with multidisciplinary professionals across agency, building consultancy, and valuation.
Expert guidance is essential to accurately cost improvements, ensure compliance with regulations, and align refurbishment plans with real market demand. A carefully coordinated strategy will balance capex with achievable value uplift, ensuring that investment decisions are commercially sound and sustainable.
To sum up
Maximising the value of a property in a challenging market requires more than reactive measures – it requires a proactive, holistic approach. By focusing on presentation, flexibility, sustainability and sector-specific design, property owners can attract stronger covenant occupiers, secure investor confidence, and ultimately protect and enhance asset value in the short to medium term.
With thoughtful planning and expert execution, even in uncertain times, well-positioned properties will continue to perform – standing out as resilient, desirable assets.
Adam can be contacted on 0191 323 3286 or adam.harley@knightfrank.com