If you want to go big in the world of real estate, should you buy multiple houses?
What about a mansion? Or maybe you can flip a run-down property? While all those may hold promise, none holds the excitement and promise of the commercial real estate world. But how much money can you make?
The only way to understand that is to get to grips with a commercial property valuation in Greenville, South Carolina. Here is what you need to know.
1. The Location
The location of a Greenville commercial property will have a massive impact on its value. More accessible spots in prime locations will be more sought-after.
Expect high valuations for commercial properties near public transport or major road networks. Also, expect higher valuations if the property has excellent nearby amenities like shopping centers or prestigious business districts.
Some companies want to base themselves in prominent commercial hubs. If your property is in one of those locations, it will make it more desirable, giving you a higher valuation.
2. Real Estate Market Analysis
The broader economic climate significantly influences commercial property appraisal methods.
Factors like interest rates influence affordability and will shape businesses' decisions about investing in new commercial properties. Local market trends are also a factor.
Demand in the area, such as employment rates and businesses moving into the area, will shape demand for commercial properties. That, in turn, will impact valuations.
Always look at market trends from the past few months when conducting an investment property assessment.
3. Zoning
Zoning laws outline what you can and cannot do with a commercial property, so they will always impact your property.
A commercial building that offers flexibility in its use will have a wider pool of potential tenants than one restricted to specific purposes.
Areas that offer more favorable zoning rules also provide more options for development and expansion, positively impacting your valuation.
4. Property Condition
Many business owners require properties in excellent condition, especially if customers visit the premises. The age and condition of the property will impact the valuation.
You can influence this aspect of the valuation by upgrading parts of your building, including the exterior and customer spaces and the electrical and heating systems.
A commercial property that looks fresh and well-kept will command more interest and inquiries.
5. Income Potential
Commercial properties with the chance to attract a high income will always receive a higher valuation for rental rates than others.
A retail or restaurant building in an area of good footfall and a local clientele with lots of disposable income will command a higher valuation.
Stability matters to businesses, too. A building that can offer a stable income will be worth more than one that's volatile, such as a tourist location that's virtually empty out of season.
Commercial Property Valuation: Getting the Best Returns from Your Investment
Don't rush the process of commercial property valuation. An accurate figure can mean the difference between a property that struggles to find a tenant and one that makes a healthy profit. Use this guide to help you.
PMI Southern States' full-service real estate team has the know-how and commitment to help you hit your profit goals, as we are part of a franchise that's been in business for over 20 years. Discover more about our commercial real estate services in Greenville, South Carolina.
