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Commercial landscape architecture is about more than adding the final aesthetic touches to a property. Modern commercial real estate professionals understand that landscape architecture is a strategic asset that delivers a tangible return on investment. Landscape architecture impacts commercial property value by increasing rental yields, attracting premium tenants, reducing operating costs and improving occupant satisfaction.
Increasing Asset Valuation
The valuation of commercial property largely depends on occupancy and income. Any investment that helps to attract and retain tenants and support higher lease rates must be part of the strategic plan. Better-looking properties have been proven to lease faster, retain tenants longer and improve lease rates. A positive return on investment results from the investment in great landscape architecture.
Retail tenants, in particular, understand the importance of attractive landscaping. Landscape architecture has a positive effect on retail sector value by creating higher retail sales and better lease rates. Studies have shown that consumers are drawn to attractively landscaped retail spaces and as a result are willing to pay 11-12% more for goods and services.
Studies have also shown that masterful landscape architecture has a beneficial effect on the bottom line for office buildings. Lease rates have been found to be roughly 7% higher for office properties with great aesthetic value. The value comes largely from employee satisfaction and performance when office buildings have well-kept natural surroundings. Employees working in environments with natural elements, greenery, or views of nature report a 6% increase in productivity. Boosts in creativity and well-being are often reported, as well.
Enhancing Curb Appeal
Curb appeal is perhaps an overused term in the real estate industry, but it definitely influences how the value of a property is perceived. In commercial real estate, curb appeal has an impact on two different audiences that determine what a property is worth.
Landscape architecture impacts commercial property value by speaking to prospective tenants before they set foot on a property or start discussing numbers. Well-maintained grounds make a tenant feel welcomed and valued both before and after the lease is signed, helping an owner to to attract and retain tenants.
Employee well-being can be an important factor in office building tenant satisfaction. Thoughtful landscaping that promotes natural beauty and employee well-being provides a major advantage in retaining good tenants. Employee satisfaction begins the moment they arrive at work and landscaping provides the daily first impression.
The great first impression from attractive landscaping is also important for attracting buyers and investors. Real estate investments often involve a drive-by as an early part of the decision making process. Attractive grounds send a positive signal about property management and attention to detail before a broker or agent is even contacted. When a site visit does happen, the perception of value that landscape provides is a positive negotiating point.
Maximizing Internet Search Value
We live in an age where the roots of a purchase or investment decision may start to spread even before a drive-by. In a recent survey, 59% of respondents indicated that they begin making their purchase decision with an online tool. As with most social media and search content, there is a lot of strength in imagery. Studies have shown that up to 68% percent of property renters and buyers are directly influenced by landscape design.
Ignoring what a property looks like at first glance is a real risk when marketing online. Investors and buyers tend to make judgements quickly and as many as 3 in 10 make an initial decision immediately when seeing a property online. The way landscape architecture impacts commercial property value in digital marketing must not be underestimated.
It is also vitally important that landscape maintenance is given the same attention as design. An online image represents a single point in time, but a property may remain on the market for well after that photo is taken. If the real-life appearance at first visit doesn’t match the expectation created online, a deal becomes much more difficult to achieve. Ongoing professional landscape maintenance assures that the property is ready to live up to expectations no matter when it is visited.
Adding Square Footage
Well-planned outdoor spaces provide a functional return along with an aesthetic one. Walkways, patios, resting spaces and meeting areas make a landscape useful as well as attractive. When landscaping is designed to support outdoor activities, it increases the usable square footage of the property.
As mentioned in Designing Outdoor Spaces for All Seasons, enhancing outdoor areas can be a cost-effective way to increase capacity, improve customer experience, and elevate property value. This is particularly true in a market when construction costs and interest rates remain high.
Highlighting Environmental Responsibility
Environmental responsibility and sustainability has become an important consideration for tenants, buyers and investors. Landscape architecture impacts commercial property value by presenting an outward facing ecological statement as well as tangible efficiency results.
There are a number of factors that can help make a property more efficient and sustainable. Trees and plantings can help to moderate building temperatures along with reducing exposure to harsh elements. Well-planned moisture control can help to lessen the impact of extreme precipitation events while lowering irrigation requirements. The use of native and drought-resistant plants not only reduces water consumption, but helps to ensure a longer lifespan.
A thoughtfully designed commercial landscape can lower operating demands and improve resiliency over time. It also presents an intentional focus on sustainability that is now part of the decision-making vocabulary of consumers and employees. Properties that attractively utilize sustainable landscape practices appeal to eco-conscious clients and are valued higher due to their reduced ecological footprint and positive operating effect on costs. Such features also appeal to investors looking for forward-looking properties.
Improving Security
A well-designed landscape can also help to increase security. Trees and shrubs can be incorporated where they can act as natural barriers while not impacting visibility. Well-lit areas not only deter crime, but make an environment much more inviting after dark. The right design can make a property attractive and welcoming while also improving its security.
Commercial real estate buyers and investors understand the cost of the negative perception of an unsafe property right along with the real cost of insuring it. Strategically designing the commercial landscape with safety in mind is yet another way that landscape architecture impacts commercial property value.
Getting the Most Out of a Long-Term Investment
Proper maintenance is an important aspect of maximizing the return on an investment in landscaping. Like any other aspect of property management, upkeep is critical for keeping landscaping looking its best. A well-maintained landscape increases a property’s attractiveness to buyers, investors and tenants by suggesting good maintenance on the property overall.
Professional landscape maintenance is not just about keeping the grass cut and hedges trimmed. A good landscaping team will also take care of seasonal plantings, irrigation systems and pest control. These maintenance tasks are essential to keeping the landscape looking its best as well as increasing its longevity.
Your Expert Partner in Landscape Architecture Value
At Jerry Pate Design, our experts understand how to make a property look good while adding the best return on investment. Our team knows where to find the best opportunities to enhance value and improve sustainability while creating a space that customers and employees will enjoy and be proud of.
Exceptional landscaping is not just about looking good. It’s an essential part of a business strategy that can successfully set a property apart in a competitive market.
