What tips do you have for keeping operating expenses low

[Brock Hoffman]

Hi BP,

What are some ways you keep expenses low in an office/retail building? I have heard updating the lighting to led is a huge savings on electric bill. It’s a 1930’s building w retail on bottom floor(they pay utilities and repairs) and office space on upper two floors(owner pays utilities and repairs.)

Bonus question: what do you do to increase your income? Built in annual rent increases? Vending machines? Shared office space(rent by the hour with a monthly fee?)

Looking forward to gaining knowledge from y’all’s experience and putting it to work.

Thank you,

Brock

[Henry Clark]

Random thoughts. Without seeing hard to identify specific possibilities.

Ice vending machine out front

Solar power on roof

Billboard out front or on side of building. 

Insurance. How do you have setup?  You with blanket coverage.  Tenants should have coverage with you as additional insured.  Reduce your coverage

Property tax.  Triple net with tenants?  See if potential for review.

Rent food truck spot couple times a month.

No room for firework stand $15,000 for 3 weeks.

Upstairs ceiling high enough for in door golf driving range and rec rental?  Bar, large screen tv, party room. 

Any Indian ethnic people you can do business with?  Handicap.  Military. Etc.  Use one floor to office an 8A contracting company. 

The business creation is what brings value to the property.  See if any of the colleges or government entities need an incubator location for business startup.  Work with them in start up rent then scale up.  

Catch a medical person coming out of school and work with them.  Chiro, dentist, optometrist, etc.  See what your town needs. Who is retiring.  Make contacts at medical schools and help them with a startup. Build your tenant.