Commercial Property Valuations Brisbane

An Australian commercial property valuation is a report that provides a detailed description of the market value of a property. It is usually used to determine how much it would cost to buy or sell a building, and also helps in determining insurance premiums. The process involves many different steps, including gathering information about the property and comparing it with similar properties that have been sold recently in the area.

The main difference between a commercial property valuation and a domestic one is the factors used to determine their value. A commercial property valuation is based on the amount of Net Operating Income (NOI) it produces, not the value of the land (which doesn’t produce any revenue). A domestic property valuation, meanwhile, uses the sales comparison approach, reviewing all elements of a property such as location, age, square footage, landscaping, condition and the number of bedrooms.

During a commercial property valuation, a valuer will look at several different factors, which are usually related to the property’s income and operating expenses. These include:

• The property type (office, retail, leisure, healthcare, industrial)
• Market rental yields
• Square footage of the property
• Parking spaces per square foot ratio
• Existing leases and rental rates
• Rental rates of comparable properties in the same market
• Vacancy level of similar properties in the same market
• Historical operating expenses
• Proximity to local transportation options such as buses, trains and motorways
• Maximum allowable depreciation
• Known operating expenses for comparable properties in the same market

Commercial property valuation prices are affected by several factors. The most important factor is the current economic climate. For example, if the economy is strong and many new business ventures are being undertaken, then commercial real estate will probably be more valuable. If the economy is struggling and businesses are closing, then commercial real estate may not be worth as much. Other factors that affect prices are population density, construction costs in specific areas and lease rates.

You can also get an idea of how much your business premises are worth by researching current market trends and comparing them with previous years’ data. The valuer will usually use a combination of historic data they have gathered alongside and any information they’ve collected during an inspection of the premises to assess its condition and location. By pooling all of this information together using data analysis software, the valuer can easily spot any trends and come up with an accurate figure.