The commercial real estate market is characterized by rapid change and the need for constant renewal. Nonetheless, the key factor determining the value of a commercial property is quality of location.
A commercial building stands out for its unique character. It is unique due to its location, and also because it is not constructed as part of a series, but rather built to meet the specific needs of a business. Nevertheless, its distinctiveness is established by its location, since a property that is profitable on one site might be less profitable if it were located right next door.
As such, the concept of spatial economics plays a key role in our appraiser’s valuation. Our attention to detail and in-depth market knowledge make all the difference.
Commercial property is often subject to leases. In these cases, the property value is measured based on its income-generating capacity and real estate investment yields. The innovative financial analysis procedures and appraisal tools developed by HPDG’s experts ensure that you obtain relevant information and results that reflect market trends.
- Identification of the property’s strengths and weaknesses
- Comprehensive financial analysis of the building
- Thorough lease review
- Rent comparison based on rental market trends
- Analysis and standardization of property operating expenses
- Identification of steps to reduce certain expense items
- Calculation of financial ratios and performance ratios for the building
- Anticipated income and expense projections
- Investment risk assessment
- Survey and analysis of comparable real estate transactions
- Comparison and positioning of the property on the market
- Assessment of the property’s effective potential with respect to its market and sector outlook
- Proof of estimated value based on facts and market indicators