6 overlooked investment opportunities in commercial real estate

The opinions expressed by entrepreneurs contributors are their own.

In commercial real estate, smart owners exploit every available opportunity to maximize their net operating income (NOI) and create new leveraged equity. Over time, small changes can generate millions of dollars in cash flow and added value, which will be extremely beneficial as you grow your CRE portfolio.

Since I closed my first transaction at the age of 18, I have amassed 18 years of success as a professional CRE investor with the help and guidance of mentors who are legends in the our sector. Here are some of my favorite and most effective insider tips to help boost your numbers.

Related: Harness the Wealth Potential of Commercial Real Estate with These 5 Tips

Almost every type of property has a 24 square foot area that can be trimmed with minor modifications. If you own a property that has a commercial frontage or is located in a busy pedestrian area, consider creating space for an ATM.

In most markets in the United States, the average ATM space typically rents between $500 and $1,400 per month (as of the date of this posting) and requires approximately 4 square feet of floor space. x 6 ft. That's at least $6,000 in annual revenue for 24 square feet (or $250 per square foot).

In areas with heavy foot traffic, renting an ATM could bring in between $1,200 and $1,400 per month, which would translate to a capital increase of up to $420,000. Talk to your local bank about placing an ATM in your area. Owners can also choose to install their own ATM and collect fees on cash withdrawals, but such an operation requires practical management.

While the cash flow may seem negligible, vending machines can add a surprising increase in equity to a property's bottom line. Newer, more automated machines with card readers are more desirable. It's easier to track revenue and profit with credit card purchases than with cash.

You can either buy machines or rent them. Monthly leases can start at around $50 per month. For most products, the profit is around 50%. With two machines, one for snacks and one for soft drinks, you can expect to sell around 300 items per month with an average profit of $0.75 per item. That's a gross income of $225 per month and a net income of $125 per month (minus the $100 lease). Although a net annual income of $1,500 may not seem worth it, it is a potential net gain of $20,000 for the property.

Many manufacturers sell, finance, or lease the equipment. If you choose to buy or rent, there are reputable suppliers offering state-of-the-art machinery on great terms. Third-party vendors will also rent space in your property and take care of all storage and maintenance for you.

Related: How to Start Investing in Rental Properties - Your Step-by-Step Guide

In older apartment buildings without washer and dryer connections in every unit, owners can potentially convert ancillary or otherwise unused space in the building (such as a basement) into a coin-operated laundry room.

While renovating a former student apartment building near NC State University, we transformed an empty crawl space into a laundry room with four coin-operated washing machines and four clothes dryers. I had 24 units in the building, most of which were two bedrooms, so about 48 residents. This simple convenience has generated over $1,000 per month. The extra $12,000 per year translated into an instant capital gain of over $200,000.

Most suppliers offer financing or leasing options for laundry equipment so you can get started with little capital out of pocket. Coin-operated washers and dryers can also be purchased from major home supply retailers, through Amazon, or directly from equipment manufacturers.

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