Adding appreciation to a commercial property

[Stephanie C.]

Hello BP, 

One of my partners and I purchased a commercial building earlier this year. (First RE investment for me) I was wondering if there is any way to force appreciation by doing the bare minimum. Ultimately, I am looking to cash out to make some larger repairs like fixing the roof.

It is currently 100% leased.

Thanks

[Jeff Greenberg]

@Stephanie C. You force appreciation by increasing the NOI. This can be done by raising rents as mentioned by @Harrison Smith.  If you can reduce any of the expenses that will also increase the NOI.  At 100% occupied you will either have to wait until the leases expire or negotiate increased rents by giving the tenants something.  Maybe some upgrades.  A longer lease may add some value when you try to sell, and carry some weight on a refi, but you may want to check that out with your lender.