Selling a light industrial zoned commercial space

[Colleen Carnahan]

Hi all,

I am currently helping a friend re-design her studio which she rents from her boyfriend who owns the space. He seems particularly concerned about having to fix things I implement (patching, repainting etc.) before selling when that time comes down the line. 

My background as an investor has been 100% residential real-estate, and I know in that world when you go to sell patch/paint is generally the minimum expected when trying to sell a home on the market, and that other upgrades/renovations can help increase your market value etc. (to a point) However I am uncertain what the standards are when selling/marketing a commercial property. I have worked a number of corporate jobs in the past and I've observed everything from a space being sold/leased as is to a space being gutted and stripped down to the bones to sell/lease. If anyone more familiar has some insight that they could lend me. I would like to be able to have that in my back pocket to help try to persuade him to let me make the adjustments I'm trying to make. 

It is zoned as a light industrial warehouse district, the down-stairs is currently being used as Ji-jitsu gym, while the upstairs (the portion I'm renovating), is being used as a massage studio. 

Please let me know if there is any other relevant information necessary to help provide an answer! TIA