When most small business owners think of owning property, they think only of the expenses it creates (e.g. mortgage payments and maintenance costs). Additionally, there is a misconception that you can only make money on commercial property upon selling the asset or renting it out fully. But your commercial property can easily generate income for your business—even if you continue to occupy the space.
At withco, we make commercial property ownership easy and accessible for small business owners so they can reap all the benefits of commercial property ownership, including generating additional income. Below, we outline just how you can use your commercial property to generate income as a small business property owner.
1 — Lease unused space
Not all buildings are an exact fit for your business needs, and if you have any excess space, you should consider leasing it out to another tenant to generate income. Maybe it’s time for spring cleaning—is there storage you don’t use very much that someone else might need? Or perhaps you have extra parking space, and the business next door is overflowing with vehicles—you can lease spaces from your lot and make some money from them too. Get creative with your property’s nooks and crannies and figure out if there’s a way to make money off of unused space.
2 — Rent out your space for events or photoshoots
Whether you have a gorgeous interior design or an empty warehouse, there’s potential for you to rent out your space temporarily for events like weddings, corporate meetings, or even photoshoots. A steady stream of event rentals that don’t disrupt your own business can be fruitful in cutting down the costs of your building.
3 — Charge for additional services
If you lease unused space or do event rentals, you can add stipulations to the lease that require the lessee or renter to use any services you provide. For example, if you rent your space for an event, you can require that the renters use a catering company that you own for the food service. Or if you lease out parking or storage space, you can add a cleaning fee for maintaining the space on their behalf.
4 — Invite other businesses to advertise
Many properties come with billboards, air space or wall space that can be used for out-of-home advertisements. It may seem counterintuitive to advertise another business on your own business’s property, but the income and goodwill it will generate may be worth it.
5 — Rent out your space with a triple net lease
Maybe you’ve been in your space a long time and are looking to expand, or maybe you’re ready to retire and close your business for good. If the financial conditions work, you could easily generate income from renting out your space with a triple net lease to maximize your returns. A triple net lease means the tenant pays for property taxes, utilities, and building maintenance, so you can let them run the property as they see fit while paying you rent.