Did you know that Arizona residents are the second most likely in the country to launch a small business each year? These businesses encompass various industries, such as health care, real estate, and professional services. One of the things most of these businesses need is a place to operate.
As a property investor in Prescott, you can tap into the market by offering commercial properties for rent. It's important to know how to determine the value of your property, whether you want to sell it or use it to generate income. This blog will go over the top five factors of determining commercial property valuation in the state.
1. Location of Your Commercial Property
The location of your commercial real estate property is one of the most important elements of determining its market value. Where your property is located and what the neighborhood is like can increase or decrease its value. How close you are to different objects, such as train tracks or power lines, can detract from its value.
Visibility and accessibility are also important when looking at its location. Locations that are easy for customers to get to and highly visible are more desirable for businesses. This could contribute to your property's overall value.
2. Condition and Age of Your Property
People are more apt to rent newer buildings than ones older than 20 years. Older buildings can come with problems, such as:
- Foundational issues
- Out-of-date construction
- Old appliances
- Lead-based paint
Modern, recently updated spaces attract more potential renters who will pay for those features.
3. Your Building's Curb Appeal
Your property's attractiveness is one of the top property value factors to keep in mind. Some things that can negatively impact your building include:
- Cracked concrete
- Overgrown foliage
- Peeling paint
Enhancing your property's exterior can raise its value.
4. Demand for Similar Commercial Spaces
Supply and demand play a part in your property's value. If there is high demand for commercial spaces, but not enough properties to go around, that'll cause the value of your building to go up. On the flip side, a large supply of properties and not enough renters can result in a decrease in value.
5. Impact of Zoning Regulations
Local government zoning regulations and laws will decide what kinds of activities can be performed on your property. This has a direct impact on a property's financial potential.
For example, if your building is zoned for multiple uses, it'll often have a higher value. This is because it has a broader market appeal and is flexible.
Get Help Determining Your Commercial Property Valuation
There are many things to consider when calculating your commercial property valuation. You want to ensure you ask for a fair price when renting or selling your property. That's why you need to partner with an experienced property management company for investment property valuation.'
At PMI Northern Arizona, our team of property managers has experience working with commercial properties. We'll work with you to calculate the value of your commercial property, helping you bring in high-quality tenants and increase your profits. Contact our office to schedule a consultation with our real estate investment professionals.
