Commercial Property Value Set Against Marketability
The marketability of a commercial property is determined by various factors which includes the type of tenants, the value of the leases, the position of the property and the view of the market
‘’When the decision arrives to sell a commercial property, there are many things that can be done to maximise the selling price. From the onset, a distinction should be made between value and marketability. Value is how much the property is worth, taking into account the income or the possible income, whether or not the property is vacant as well as the condition, location and specific attributes of the property. This contributes to the attractiveness of the property at the time,’’ explains Rainer Stenzhorn from In2Assets, the leading commercial property facilitator in KwaZulu-Natal. The value of your commercial property is to a large extent determined by supply, demand and specifically on commercial property, the current or future revenue. While renovations and alterations can change the appearance, this does not necessarily translate into an increase in the value of the property. A commercial investor simply buys the revenue stream generated by existing leases, or the opportunity or upside that the property offers.
‘’The marketability of a commercial property is determined by various factors which includes the type of tenants, the value of the leases, the position of the property and the view of the market,’’ comments Stenzhorn further. The more positive attributes a commercial property offers, the better its marketability. If the property is in line with all positive aspects, clean and neat, potential buyers are more likely to find it appealing.
‘’A vacant commercial property is not always the easiest seller, however from a marketing point of view it attracts two actual markets , the end-user as well as the investor who potentially has a tenant lined up already.’’ ends Stenzhorn.
In2assets is KwaZulu-Natal’s biggest property facilitator, offering services such as valuations, letting, conventional broker sales, commercial property auctions as well as private sales and property marketing services. For more information, contact Rainer Stenzhorn email@example.com