Security investments aren’t strictly for the protection of commercial properties; they support increased values and owner-prospective quality tenants as well. However, not all investments in security are created equal—while some offer measurement in value increases, others are little more than check boxes that do not elevate property value or increase rent amounts.
Tenant Perception of Security
Quality tenants assess security as part of their criteria for which commercial space to operate. They want to protect their businesses, employees, and assets but do not want to financially bear the full responsibility of security. Those properties that already have an effective and impressive security system in place can charge higher rents for tenant responsibility that is offloaded onto the owners.
Professional offices, in particular, benefit from established security systems. Medical practices, law offices, and financial service companies have strict security requirements. Properties that provide such needs attract these quality tenants who pay more and stay longer. Thus, the established security system becomes a value add and competitive advantage in tight markets.
Cameras that Add Value
Basic camera systems do not go a long way toward assessing values beyond the norm of expected commercial coverage. All commercial properties have minimal camera coverage at this point, so any strictly basics arrangement meets minimum criteria. However, expansive and extensive systems with advanced cameras tell a different tale. Modern commercial cctv security systems with dedicated coverage in parking lots, entrances, common areas and perimeters offers a tangible value-added proposition for tenants and prospective buyers.
Furthermore, excellent coverage matters as does function. If there are four cameras pointed at the door, those are far less compelling than a network of footage throughout the entire property. Furthermore, high quality cameras with vivid recordings in different lighting capture character and license plate information that less clear cameras do not.
Remote monitoring is another value added. When tenants and property management can pull up camera footage from anywhere, it reduces the necessity for security to be on site but still offers managerial oversight opportunities. This additional operational efficiency translates easily into a higher property value.
Access Control Systems
Those properties that already boast enhanced access control systems net better rental opportunities and higher values. An access control system means that entry is based on cards or codes which means owners can dictate who enters their areas as opposed to general key use which allows anyone to enter anytime, regardless if they should be there or not. Multi-tenant buildings benefit because each business can control its area while property management maintains access for management purposes.
Beyond convenience of operation, access control means audit trails that indicate who went in when. This accountability is necessary for insurance purposes—liability, intrusiveness, operations—and a property that provides this access control avoids the cost and hassle of implementation for tenants themselves.
Furthermore, when access control systems work in tandem with camera systems, they add even more value. If someone badges in, the cameras automatically record. This information is invaluable to protect both parties from liability and to document what happens on site.
Lighting as Security System
Quality lighting doesn’t always appeal as a security investment but it goes a long way to making properties more desirable with less competitive potential than one would think. If parking lots and walkways are well-lit—as are building perimeters—tenants and customers feel safer. However, this perception—and the validity of it—impacts leasing decisions far more than owners anticipate.
Furthermore, LED lights work via motion sensors or smart control; investment in lighting does not mean unnecessary added operational costs due to 24-hour demand. For tenants who do not want their employees walking to cars after dark because there is no reliable source of light, this mere comfort factor helps retain tenants and charge higher rent.
Emergency lighting systems also add value. If backup lighting goes into effect when power goes out, tenants looking for quality business operations appreciate such preparedness to know that a property cares about business continuity—they don’t want tenant-occupied properties who take precautions actively because they want to impress their tenants.
Perimeter Security Improvements
Fences, gates, or controlled entries add value in certain situations. For industrial/warehouse-type properties this is especially true; if tenants are holding significant inventories or equipment of value, they’ll pay higher amounts for controlled access and perimeter monitoring.
However, it’s important that appropriate levels of security make sense for the property type; office buildings do not need fortresses all around them but it does indicate clear boundary lines and controlled access that benefits them—but it also has to be assessed as a natural level of security effort—not extreme nor too laxed.
Paperwork and Certification
When security systems are documented through professional installation efforts and subsequent service means ensure valuated systems when selling properties, this adds value dramatically. When either party knows what they are getting—and whether or not it’s guaranteed to work—they feel more comfortable increasing what they’ll pay for those assurances. When there’s red tape involved, uncertainty decreases which shifts the amount different parties will part with.
Furthermore, security systems that adhere to certain professional standards or insurance recommendations open specialized doors for certain tenants. Healthcare entities, government contractors and other regulated industries look for properties that will support their compliance needs already met. They don’t want to have additional costs of build-out—they want to occupy quickly.
Long-Term Maintenance Outlook
Security systems that require limited maintenance retain greater value than those needing continual attention. Buyers understand ongoing costs when assessing values but anything with reliable track records and little servicing needs gets scored higher in valuations.
Additionally, service contracts that transfer over with sale add more value than when ownership comes with investigation needed for local service providers.
Insurance Premium Impact
Properties with existing security systems tend to draw lower insurance premiums when they’re documented; the reduction in operational expense coupled with value appreciation promotes possible lower buyer acquisition. Buyers value savings; reduced premiums offer savings when calculated over time with properties generally paying more for properties equipped with higher end budgetary offerings.
While premiums will vary based on property type and location, good security can decrease premiums by reputable percentages that compound over years into thousands of dollars well worth additional costs paid toward securing systems going forward.
Investing In Security Effectively
Not all dollars spent in the name of security retain equal value—they only benefit properties when they’re invested as appropriate for actual risks in certain markets. Learning what works best in specialized areas goes a long way toward directing funds to specific appropriations that increase valuations over time.
Security systems should feel modern, not out of date. Those systems that still employ antiquated technology functionally do so but complicated buyers of discerning tastes will assume deferred maintenance has occurred which does not preserve valuation—it boasts overall appeal.
Thus, educated security investments maximize commercial properties through increased rental amounts from quality tenants; decreased vacancy periods; lower operating costs per investment ratio—and stronger sales opportunities down the line when procurement trends take place—not just forced box-checking due to owner/operator integrity assessments during purchasing efforts.
