According to Mordor Intelligence, the value of commercial properties in the U.S. is estimated to reach $1.89 trillion by 2029. This will be an annual growth rate of 2.61%.
Understanding what impacts investment property value allows for the right investment decisions. You can also optimize your asset portfolio to avoid unforeseen losses.
Need accurate commercial property valuation in Phoenix, AZ? Learn the essentials and make informed decisions. Explore various property value determinants today!
1. Physical Property Features
A real estate appraiser will measure the square footage of your property to determine its size. They consider the property's layout when measuring the size. A larger size translates to higher property values, and vice versa.
Age and conditions also impact commercial real estate pricing and valuation. Properly maintained properties in good condition have a higher value. This makes them attract higher market prices than those with poor structural integrity.
An investment property with modern architectural designs attracts high value. Movable walls and smart technology are some architectural designs for investment properties. They enhance the commercial property's:
- Energy Efficiency
- Curb appeal
- Sustainability
2. Generated Income
Commercial appraisal tips include evaluating current and forecasted rental income. The appraiser checks the current market rental rates. They also evaluate the growth possibility of the determined rates.
Lease terms, lease spaces, and maintenance expenses affect commercial property rental incomes. Tenant turnover or occupancy rate also impacts an investment property's valuation. A management company can help attract new tenants to increase your property's value.
3. Location
A realtor appraiser determines how accessible an investment property is during valuation. Proximity to various amenities makes an investment property more valuable. Amenities enhance an investment property's comfort and demand.
Location also involves determining a property's proximity to major roads and highways. Commercial properties near reliable transportation networks have a higher value. This is because they enhance tenants' and investors' convenience.
Commercial properties in urban areas have a higher value than those in rural areas. An urban area has a more stable economy that positively impacts an investment property's value.
4. Market Conditions
Real estate appraisers conduct property market analysis to determine potential demand. The high demand for an investment property by tenants and investors reflects its high value. Oversupply of investment properties decreases their rent and sale prices.
The property management company will keep you updated on market conditions. You'll make sound decisions regarding buying or selling your investment property. Market trends also include reviewing current lease and rental rates.
5. Regulatory Factors
Local governments implement zoning laws that affect the value of commercial properties. Zoning or land use laws increase the value of commercial properties more than residential properties.
Commercial properties complying with environmental regulations also have higher values. Property taxes and assessments are other regulatory factors impacting valuation.
Hire Commercial Property Valuation Services in Phoenix, AZ
Commercial property valuation will help you improve your asset performance. You make sound decisions that align with your financial goals.
Need help with appraising your investment property in Phoenix, AZ? Property Management Real Estate Services, Inc., is the help you need. We aim to appraise your commercial property and help you maximize its profitability.
Contact us today for immediate help.
