Introduction
This case study highlights the successful transformation of a older industrial facility through a strategic refurbishment plan. The property had been on the market for over a year without any significant leads, primarily attributed to its outdated appearance and unappealing look and feel.
Our property team envisioned a plan to invest in the renovation of the offices, outdoor spaces and other amenities in the building. An investment of not more than 5% of the value of the property was made in this refurbishment.
A complete new color scheme of light grey and dark grey paint was visualized and then executed on-site, which made the exterior of the property look stunning.
After completing the refurbishment which took just under 60 days, we were able to secure multiple viewings with the right brokers and within 90 days we had 2 serious offers, the property was sold impressive psf rate of AED183, whereas the current market for older properties AED150 psf. This case study outlines the key steps taken during the renovation process and examines how the refurbishment significantly impacted the property’s marketability and final sale price.
Background
The warehouse, situated in freezone area in JAFZA North, had been listed for sale for an extended period, but potential buyers were deterred by its lackluster visual appeal and unattractive offers. The property was priced at AED150 psf, significantly undervaluing its true potential. Recognizing the need for a change, the decision was made to invest in a limited refurbishment plan.
Refurbishment plan
The refurbishment plan aimed to revamp the property’s appearance and improve its overall functionality, thus increasing its market value. The following steps were undertaken during the two-month refurbishment process:
Exterior renovation
The facade received two fresh coats of paint with a sleek color scheme, instantly transforming its outdated appearance. In addition to enlarging the glass façade and windows area for the offices bringing in sunlight and an open feel to the offices.
Landscaping improvements, including the addition of white stones and enhanced lighting, were implemented to create a welcoming entrance.
Interior upgrades
The interior layout was reconfigured in an open layout office to optimize space utilization, making it more appealing to potential buyers.
Pantry areas and toilets have been totally refurnished with new tiles, LED lights and flooring. Al switches and electrics were redone with a black and grey colors.
Infrastructure enhancements
The electrical and plumbing systems were upgraded to meet modern standards, ensuring optimal functionality.
The flooring was replaced with durable and visually appealing grey concrete tiles, enhancing the overall aesthetics.
Conclusion
The case study demonstrates the importance of investing in refurbishment to maximize the market value of a property. By addressing the aesthetic and functional shortcomings, the warehouse underwent a remarkable transformation that attracted potential buyers and resulted in a significantly higher sale price. This success story highlights the potential return on investment that can be achieved through strategic property renovations through the experience and expertise of Palmon Group’s skilled property management team.
