How To Ensure Your Commercial Property is Valued Correctly
Investing in commercial property is a lucrative way to make money. With new businesses cropping up every day, there will always be a need for commercial property to operate from. But what can you do to ensure that your commercial property is being valued correctly given the current market?
The rental market fluctuates as frequently as any other investors market and part of investing in this type of investment is monitoring how rent changes locally and nationally.
Do your homework
Research other commercial properties within the area and with similar amenities to ensure that you are staying in-line with other property locals. This should also include checking on developments within the area. For example, a new estate being built nearby could dramatically alter the value of the property, as could any planning developments such as a supermarket or mall. Whilst proximity to shops might add value, a new airport and its associated noise would decrease it, so it pays to think in to the future somewhat.
Seek professional advice
As with any investment, you will learn more about it as time goes on. In the meantime, it pays to seek professional advice. Commercial property experts like GVA will be well versed in evaluating the property fairly, and efficiently, so you can gain as much advice from them in the early stages.
Watch the market
Keep a close interest in the market. Some commuter towns which are becoming increasingly popular may have a proliferation of commercial buildings, since they have more space for industrial growth. This means snapping up a bargain now and watching as rental prices and desirability both soar.
Different building categories correlate with market value and these can change over time. Know what you are buying and keep an eye on the ways in which the categories change, and what you can do to improve on your investment. Adding a car parking space for example, could increase the value of your building.
Keeping the building/s in good condition means you will have happy tenants and are likely to keep them for a long time. That said, you should perform annual reviews to ensure fair price.