What is my commercial property worth?
Commercial property owners often wonder when is a good time to sell, lease or simply hold on to their investment. The value of commercial property in Tampa Bay and throughout the country is primarily based on three key factors: Location, Type of Property, Prior Use.
Commercial Property Tampa: Location, Location, Location
Most people think of a business like McDonald’s as a fast food restaurant. Yes, in fact it is a restaurant, but the smart folks at McDonald’s also understand the value of their commercial real estate. In just about every town and city in the US, you will find a McDonald’s strategically located somewhere near the center and scattered from the center at key points throughout town.
McDonald’s looks for the best locations within the marketplace to provide our customers with convenience. ~ McDonald’s
Location is the strategic backbone for a business like McDonald’s, which researches areas to attract the most traffic. When evaluating the value of a commercial property, location plays an integral role.
- Is the property on a main artery of town? Is it an easy drive or walk?
- Is the property in a desirable or up-and-coming area?
- Is the property hidden from view? Does it get good street or foot traffic?
Type of Commercial Property
Another factor that comes into play is the type of commercial property you own. There are four main types of commercial properties:
- Office: Office properties come in many varieties, from major downtown offices to suburban office parks. Normally these offices employ white-collar workers, require a decent amount of maintenance, but also sign longer leases with less turnover.
- Retail: There are two types of retail property: single storefronts and retail centers. Retail centers offer many stores and typically include one or more large anchor stores, such as a grocery store or a home improvement store.
- Industrial: These properties include warehouses, factories and distribution centers. Industrial properties tend to be cheaper than other types of commercial real estate due to lower maintenance costs.
- Land: A commodity in that there is only so much of it available; the ability to develop the land into something of value is up to the investor.
Dependent on which type of commercial property one owns, they may find many advantages or disadvantages when it comes to evaluating a property’s worth in the marketplace.
The last major factor determining the worth of a commercial property in Tampa and across the country is that of “prior use.” Yes, it is pretty much as it sounds — what was (or is ) the building being used for prior to sale. Is the building brand new with little to no build-out, or was it previously a big box store with all of the fixtures still inside? Oftentimes, an ideal build-out or expensive equipment that could not be moved may increase (or decrease) the value of the commercial property.
Your Commercial Property Tampa Realtors
If you are in the process of evaluating your current commercial property for sale or lease or seeking a commercial property in the Tampa, Brandon, Plant City areas, contact the commercial real estate team at Century 21 Elite Locations at (813) 960-0999.