National Commercial Property Prices Dip.Category: Real Estate
According to the recent statistics regarding the sales of local commercial properties, it has been found that commercial real estate prices are well below the assessed values of the properties. This has been the case in most of the sales and industry observers reason this to be a reflection of the US economy. They also believe that the prices depend on the building location and the building type that is involved in the purchase (think Las Vegas investment property retail locations near the Strip being worth more than at the edge of town). However, the observers have noted that the property prices in the recent sales do not reveal much about the building. Thus it is evident that the sales of any commercial property is the discounting effect of the market and also the economy.
Real estate investors will normally pay prices for a building which is partly based on the building’s intended use in the future. For example, if it is an office tower that is to be purchased, the real estate investor will pay a price equivalent to the one that also accounts for time as well as costs to fix repairs and fill it with tenants to generate revenues later. But if it is a company office that the building will be used for, then the purchaser will pay a price higher than that for tower.
Thus the home owners estimate any future costs to determine the price of their properties, or when buying a single family Las Vegas NV rental property. The price of any vacant commercial property will be estimated along with carrying costs of utilizes, maintenance, security, taxes, etc and an office tower will be estimated along with the carrying cost of fixing a space for the prospective tenants. The selling of the Iams Corp. campus is a good example. This sale, which occurred in November 2009, did not have the price of the property as the main concern. It was just a secondary concern. The chief focus was on the building location as well as the building’s visibility from Interstate 75.
Conclusively, the industry experts believe that the prices of the commercial real estate properties are based on the intended future use of the property.
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