Valuing commercial property

N

Nattl3s

Hi all
Just wondering how to value a commercial property? Its a freestanding 200m2 shop/office/building on 600m2 of land. No tenant. Could I just compare it to local land value in the area and then add a guesstimated value of the building? Ring local commercial real estate agents? I always think RE agents will tell you any old crap. Realcommercial wasn't helpful in providing sold/ lease info in terms of costs.
Cheers, nat
 
Lots of things are taken into consideration one of which is the tenancy or lack of.

On a side note - if your servicing is dependent on the rental and there is no lease in place then general you will have issues getting the loan approved.

A lot of people think that commercial is like residential where you can just rock up with a rental appraisal letter and its all sweet.
 
Thanks shahin

Sorry, should have said I would move in (as a commercial tenant). My current business lease is up in march next year. The place im looking at was originally 2 shops but now 1 - so I could lease the other side because as 1 shop its double what i need. My current rent including outgoings is just under $50K (incl GST) PA.

Cheers, nat
 
Ok cool.

Do you know that with commercial property - lenders allow you to do the valuation and you can use this for the loan as opposed to residential loans where the individual lender needs to order their own val?
 
Shahin_Afarin said:
Do you know that with commercial property - lenders allow you to do the valuation and you can use this for the loan as opposed to residential loans where the individual lender needs to order their own val?
Click to expand...

Thanks - No i didn't. Going to ring RE agent and find out asking price and work from there based on my current rent. So many factors involved in moving business premises though. Cheers, nat
 
Agree with Aaron though you can ascertain asking rent from agents they won't let you know what incentives etc etc were part of the deal. Your own research will indicate that rent may be around $350-450/m2 & upstairs is $??? but it is very subjective.

A valuer will be able to source a lot more information about the value. Don't just go to any valuer but a specialist retail valuer with a minimum of 5 years retail val experience.
 
Last edited:
Thanks for everyones replies. Had a viewing - access and parking could be major hassle plus needs a decent refit. Decided to renew current lease and forget the hassles of relocating and refit costs etc. cheers, nat
 
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