How to identify a commercial property value? Is it the value of business + property value as residential?

Kentzhou Ca (over 1 year ago) - Richmond, BC
(11 people answered this question)
  • Realtor Pro   (over 1 year ago)
    http://www.darylrad.com/ Daryl Radovich

    I need to clarify your question as the business inside the commercial property and the commercial property are two different entities.
    What type of commercial building? location? zoning of current building? lot size? Is the business located on the premises a tenant with a lease? If yes, what is term of lease? If tenanted how many units are in building? If tenanted what is the base rent paid? what is the Additional rent? How old is building? What condition is building in?
    To answer this question properly, an abundance of information is required.

     
  • Realtor Pro   (over 1 year ago)
    http://davidursino.com/ Sales Representative Royal LePage Your Community Realty Inc.

    Hi Ken
    Valuing commercial properties is a lot more complicated than you're suggesting. You really should hire a professional. We do this every day.

     
  • Realtor Pro   (over 1 year ago)
    http://www.listwithgowest.com/ Richard Sobolewski

    The best is to get a local Realtor to work for you, as this is a complex question: we can always refer one to you!

     
  • Realtor Pro   (over 1 year ago)

    It will be best for you to register with a professional reltor who can help you to evaluate commercial properties for you. Send me an email, I can help you with the evaluation. It is a free service.

     
  • Realtor Pro   (over 1 year ago)
    http://www.janistsang.com/ Visit my website for interesting facts and information about the real estate market in GTA!

    I can't agree more with all of the above. A commercial property and the business within it are two different entities and should be valuated separately. In addition, if you hire a Realtor for the sale of a commercial property or business, the Realtor's fee can probably be treated as an investment expense with the CRA and that probably will save you some taxes.

     
  • Realtor Pro   (over 1 year ago)
    http://www.kenfinch.net Ken Finch, HomeLife/Vision, Toronto 416-383-1828

    The price is based on comparable recent sales. Call me at 416-383-1828. I’m a CPM (Certified Property Manager) and a Realtor.

     
  • Realtor Pro   (over 1 year ago)
    http://www.myhomegta.com First, educate yourself...

    The price is affected from land and building value.

    You have to break it down to pieces and look on the designation of the building.

    It is not easy and takes time. There are lots of factors involved including capital cost allowance and more.

    It may look like an amazing deal but if you buy the corporation vs. the building you may find your self in lots of trouble due to captured capital cost...

    Contact me if you need further help.
    iavni@sutton.com

     
  • Mortgage Pro   (about 1 year ago)

    The value of an asset to an investor is usually based on the earnings ( cash flow ) and the return on investment.

    This is a complex question.Please feel free to contact me if you require more information.
    Also, here is a good review on Commercial Mortgages For New Investors:
    http://www.monstercommercial.com/commercial-mortgages-a-review-for-new-investors/

     
  • Mortgage Pro   (about 1 year ago)

    Please also note that Cash flow is influenced by Location, Lease terms, Quality of tenant(s), Interest Rate Environment & Type of property.

     
  • Realtor Pro   (about 1 year ago)

    To identify commercial value is different process than evaluating residential property....it is the value of the business + value of the property as per zoning and other influencing factors.
    There are properties that certain % of the building is zoned commercial and the remainder zoned residential….in those situations the calculation of value has to reflect the "split zoning". In short, it is more complicated/complex process than you're suggesting.
    Do not hesitate to contact me should you have further question(s)or need help.

     
  • Realtor Pro   (about 1 year ago)

    So many complex factors to determine. We would need more info for this question. Also, find a really good commercial agent, they will make a huge difference.

     
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