Guide to Commercial and Industrial Property Assessment:
As an owner or potential buyer of commercial or industrial real estate, you’ve probably noticed that the dynamics of his market are very different from those of home valuation.
Some reasons for the difference in evaluation seem to make sense, while others are strange and unpredictable. Today, we provide a guide to the valuation of industrial and commercial real estate in Adelaide and Perth click here
Valuation of commercial real estate in Perth and Adelaide:
Commercial real estate is defined based on its zoning. Different local governments may use different designations (especially when comparing Perth’s real estate valuation with Adelaide), but in general, commercial areas have businesses involved in raw processing or manufacturing. Except for the area where the business is operated (classified as “industry”-see). Less than).
Determining the Value of Commercial Real Estate When location is important, determining the value of residential real estate can be an absolute success or failure factor in a commercial transaction. Here are some of the key factors that determine the value of commercial real estate:
Traffic on foot-Is there a lot of traffic generated by nearby businesses and facilities?
- Business Assets-These aren’t necessarily the main factors, but some niche assets make finding buyers much easier. For example, existing fuel tanks in service stations, technically advanced kitchens in restaurants, and basic upholstery assets in hotels can be major selling points.
- Building Age-Commercial buildings are often much older than similar residential buildings, which can be a major valuation factor in Perth or Adelaide.
- Floor Area-This is usually offered at a higher price in commercial areas, and a slight increase in floor area can make a big difference in asset value.
- While the Perth and Adelaide real estate valuations themselves are not slightly different, it is also worth considering a regional demographic analysis compared to the target audience of the business. This isn’t exactly an “asset value” factor, but you can certainly tell if an asset is valuable to your business. Many rating companies provide demographic information within the regional section of the report.
Evaluation of industrial real estate in Perth and Adelaide:
Industrial property is redefined primarily based on its zoning. Industrial real estate is not always dedicated to manufacturing. However, manufacturing only occurs in industrial areas. R & D parks are also often considered industrial.
Determinants of industrial asset value:
Industrial real estate is less sensitive to the exact location and the exact floor area of the property or land. Their values are mainly determined by:
Building Age and Condition-Industrial building improvements and repairs are usually very disruptive to the business and therefore lose value with the condition of the structure.
Real Estate and Building Sizes-Not as important as commercial buildings, but still important
Assets Included-Industrial real estate is often purchased by companies in industries similar to the seller, so the machinery and other assets included in the sale can be an important factor in real estate valuation in Perth or Adelaide. there is.
How to compare property management services of rental agents:
All rental agents advertise their proactive implementation of property management services. However, the price of this service can exceed 5% to 15% of your monthly rental income. So what do you get for your money and how do you know how to choose among agents?
What we tend to find is that some agents charge very high setup fees, such as First Citiz Berlin, followed by the lowest management fees. If you add these two together, you can see that the setup fee is cheap and the company is expensive. In fact, management costs are cheap in the long run.
Therefore, it is imperative that you add up all charges that may be charged and request that they be listed on page 1 of A4. Then we compare all the rates for 6 to12 month tenant contracts and don’t just assume that the “heading” percentage management numbers mean that one agent is cheaper than another.
The next issue with what is included in property management fees is that the level of service of what is included in property management can vary dramatically from agent to agent. For example, it may include a property visit when the property is empty, or an inspection visit several months after the tenant moves in. Other agents will charge an additional fee for these visits. Therefore, as with all charges, it is essential to understand exactly what is included in the property management service before concluding which agent is more expensive than the other agents.