Is Commercial Property Worth More Than Residential?
In our area commercial property can vary in price. Location & size are major factors in determining the price of commercial listings. While location and size are major factors some other things that come into play are parking, use and previous history.
Having a prime location on Main Street where there is a lot of foot traffic will generally be more expensive than a property off Main Street with little to no foot traffic.
Like residential homes square footage comes into play when determining price. Having more space for rentals, store products or sell products generally adds value to the property.
Parking space adds value for the property too. There is nothing worse then having a strong business and not having parking. The ability to provide parking for your clients or tenants makes the property desirable. While businesses on a Main Street may not have personal parking for their business, the large municipal lots give them foot traffic.
Are there restrictions in the building? The less restrictions the more valuable the property is. There are times when certain properties may restrictions on how the property can be used.
A property that has had a rental history or produced a product or service that could be continued in the future provides extra value to the property. The new owners can use this to supplement payments on any loan taken out.