Commercial buildings are expensive to run with even higher expectations for earning profits. Commercial building expenses are more too. However, the rising costs can negatively impact your profits if left ignored. Whether you are an owner of a commercial building or an investor interested in making a profitable investment, it will be in your best interest to reduce operational costs in a commercial building.
Surprisingly, you can run a commercial space with as little operational money as possible while still functioning beautifully and ensuring your tenants are comfortable.
This blog will highlight quick ways to reduce operational costs to manage your finances properly.
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Quick Ways to Reduce Commercial Building Operational Costs
There are several ways a commercial building owner can save money and be smart about it. Take a look at our recommendations.
Regardless of how large your commercial building is or how many tenants occupy the building – water usage will occur. Commercial buildings are multipurpose which means you need a better plan ahead for any water damage. Even an inch of flooding in a single apartment or room can create thousands of dollars of damage that you’ll have to fix.
In areas like bathrooms, laundry rooms, and shared spaces like garages are the most common suspects in such cases. Adding outdoor drainage grates is one of the best possible solutions whilst maintaining the aesthetics of the building. Decorative grate covering options are available in the market for this purpose. Stopping damage before it happens to save you additional costs in the future.
How old is the HVAC system? Does it have a smoke baffle system in place to stop a fire from spreading? Where are the air vents, and how often do filters get changed out? Commercial real estate should invest in modern technological systems that are fully automated and are also cost-effective.
Although it’s hard to maintain a full building’s worth of AC units, you have to pay attention because they draw a lot of power and often require a lot of maintenance and repairs if outdated. Replace worn-out products with high-quality substitutes that will require less maintenance.
Maybe you are not just ready yet to install solar panels but you can opt for an alternative and cheaper approach. Installing more windows in a commercial building takes care of the lighting bills big time. It’s not a surprise that at least 39% of the operational costs of the commercial building fall under electricity bills. And when lights require replacements, costs add up.
Installing LED lighting instead of bulbs is one of the most cost-effective solutions for commercial buildings. They last longer and are also energy-efficient. You’d be surprised by how much you save up on those electricity bills!
A smoke-baffle system is one of the most important parts of any commercial building. This means if a portion of the building catches on fire, the system will stop it from spreading and aid in putting it out.
Ventilation systems alone are not effective enough. Smoke-baffle systems are flame- and fire-resistant, lasting up to an hour giving ample time for occupants to exit the building.
Most commercial buildings have hundreds of people in them; this system is too risky to go without. Another added benefit is that it decreases building damage especially materials that are easily exposed to smoke.
Moisture will rot wood, rust metal, and warp or damage many other materials. It’s vital that you take your time and put damp proofing to work. This can be done through paint, updating the HVAC units you use, the flooring you pick, and so much more.
Make sure areas that could leak or let moisture through is sealed as well as possible so that does not happen. You don’t want to risk your building or its occupants over humidity and molding issues that could affect their health. It’s best to conduct damp surveys especially if the commercial building was vacant for more than 6 months
Often overlooked by investors, another way to reduce maintenance costs is to provide a thorough training to management. It will also ensure safety and the right use of installed technology and equipment that will eliminate their misuse.
It is always a good idea to have interactive sessions onsite and to set up the right protocol for the inspection of installed devices, types of equipment, and amenities. This way issues are easier to report and the right action is taken in a fast turnaround.
Water leaks are quickly damaging and can cost you thousands in repairs and trying to get another tenant in if they move out due to the damage. Tools like leak alerts are helpful. You should also make sure water pipes are in good condition and capable of handling the daily stress of being used by renters.
You can help this as well by making sure to get regular water assessments, making sure the water heating system is working well, and ensuring you’re set up to conserve energy by giving clients the hot water they need for daily life.
Security is vital! Installing devices that will detect threats and thefts are elemental in reducing additional costs for lost items. Consider what will protect your investment while also making sure your tenants feel confident and happy in the home they’re renting from you.
Cameras in the lobby and mail-room areas can be a great call if you feel like you need them, and key-code or pass entry to get into these common areas is also a fantastic way to ensure the property is as secure as possible.
Run Commercial Building Smoothly!
Commercial buildings are a huge investment in yourself and your future, so it’s vital that you build a property that’s as cost-effective as possible. Adding updated and energy-efficient equipment and making useful modifications to the building will help you to manage and operate the building without any trouble.