Great question. If you're talking about office/industrial space, it depends on the ecomomic indicators / demographics for the area as well as what the local gov't is trying to bring to the area. In a case like that, you have use a lot of vision, buy it right, but before you do you'll have to see who could use a space like that. Get the retailers handbook (Plain Vanilla Shell.com) and cold call retailers that specify a need for that building's sq. footage. If it's an apartment, the same applies. See what demographic needs housing (veterans, seniors, college kids) and look for the oppt'y to provide that and increase the value of the property.
I get it that location is the most important factor, but how would you value a vacant commercial property with no recent comps, even in a pretty good area? In a down economy, where it might take a year or more to get it leased up?
Comments (4)
Absolutely.
Al-Yassa Al-Mahi, over 16 years ago
Thanks for all the good ideas. Vacant commercial clearly takes more due diligence and patience.
Jon Klaus, over 16 years ago
Great question. If you're talking about office/industrial space, it depends on the ecomomic indicators / demographics for the area as well as what the local gov't is trying to bring to the area. In a case like that, you have use a lot of vision, buy it right, but before you do you'll have to see who could use a space like that. Get the retailers handbook (Plain Vanilla Shell.com) and cold call retailers that specify a need for that building's sq. footage. If it's an apartment, the same applies. See what demographic needs housing (veterans, seniors, college kids) and look for the oppt'y to provide that and increase the value of the property.
Al-Yassa Al-Mahi, over 16 years ago
I get it that location is the most important factor, but how would you value a vacant commercial property with no recent comps, even in a pretty good area? In a down economy, where it might take a year or more to get it leased up?
Jon Klaus, over 16 years ago