What to do in 2025
As commercial building owners with properties of 50,000 square feet or more look ahead, here are key areas to prioritize for capital improvements:
Sustainability and Energy Efficiency:
Invest in retrofitting buildings with energy-efficient systems, such as LED lighting, high-efficiency HVAC systems, and renewable energy sources like solar panels. This aligns with increasing regulatory demands and potential tax incentives.
Explore green certifications (e.g., LEED, Passive House, Well Building etc) to enhance building value and marketability while reducing operational costs.
Building Modernization:
Upgrade building systems for smart technology integration, including advanced building management systems (BMS), IoT-enabled monitoring, and automated controls.
Address deferred maintenance to ensure safety and reliability of structural and mechanical systems.
Tenant Experience Enhancements:
Improve amenities to meet modern tenant expectations, such as coworking spaces, fitness centers, and wellness areas.
Enhance connectivity with robust IT infrastructure, including high-speed internet and 5G readiness with ethernet ports distributed appropriately.
Regulatory Compliance:
Address code upgrades and zoning changes proactively to avoid fines and future complications. Focus on energy codes and accessibility.
Work with a competent consultant who can navigate this for you.
Mixed-Use Integration:
If feasible, explore adaptive reuse of spaces for mixed-use functionality, integrating residential, retail, or office uses to maximize revenue potential.
Core office may be dead, but flexible office spaces adjacent to living spaces are becoming very attractive.
Resilience Improvements:
Plan for climate resilience by reinforcing building envelopes, improving flood protection, and enhancing disaster recovery systems.
Whole envelope upgrades such as wrapping with vapor/air barrier, and insulated paneling from the exterior are becoming more feasible as new products are hitting the market.
Enhanced Maintenance Strategies:
Implement predictive and preventive maintenance programs supported by data analytics to extend equipment lifecycles and reduce unexpected expenses.
Work with a competent team whether in house or third party, explore the litany of tech on the market to streamline the tracking of preventative maintenance schedules, accountability, and end of useful life analysis.
Financial Planning for Capital Projects:
Leverage value engineering to identify cost-effective methods for achieving project goals while maintaining quality.
Work with a competent consulting team to put together comprehensive property condition assessments and capital planning.
I am laser-focused on tackling the challenges ahead and capitalizing on the opportunities that 2025 presents. Don't hesitate to reach out if you would like to discuss options in any of the above or just come by our office on Wednesdays from 9 to 5 p.m..
