Determining Commercial Property market Value

One major difference between residential and commercial properties is their position and their use. If you own a great lot inside of the city restrictions, with a huge storehouse store built on it, with a 10 year lease to a big box store, then you have a very expensive property. If you have the same lot size, with the same store on it, same lease, but it is located 30 miles from the only local town where most people in the area live, then you have a smaller respected property. Position, also known as market area, is more important in commercial real estate because businesses need to be near to their workers and to their customers as well.

Another deliberation when looking at market value of a commercial property is the ease of use of similar properties on the market. By looking at as many properties as probable, you can start to get an idea of what different properties are selling for in your local area. This gives you some leverage to point out differences and better discuss the price you are willing to pay. This will also give you some idea of how tricky it will be to find a occupant for your property.