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Real estate markets all over the world can be divided into two main categories, i.e., commercial real estate and residential real estate. Investment experts may argue that profits in commercial real estate are not as high as in stock exchange or mutual funds. But the reduced risks and a promise of regular income make commercial real estate the first choice venture for many first-time and seasoned investors. Generating maximum revenues from commercial real estate is not a difficult task. A number of variables impact commercial real estate value. All one needs to do is to develop an understanding of these key factors and then make an informed decision based on the numerous micro and macro variables. This presentation highlights the various essential factors that affect commercial real estate in South Melbourne.
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Factors Affecting Value in Commercial Real Estate South Melbourne
getting to grips with factors affecting commercial real estate value is crucial to get more bang for your buck! Whether you are looking to invest in commercial office space, industrial warehouse space, retail space or another type of commercial property in South Melbourne,
The three main factors affecting commercial property value • Economic factors • Location factors • Location factors
1) Economic Factors Economic factors that affect property valuation include both supply and demand operators, such as: real GDP growth wage growth the unemployment rate migration rates and changes in the overall population interest rates (obviously!)
2) Location Factors Now, a property’s location may not be the only driver of value, but we know it’s important. Things like: A Population growth B Transport Location Factors
3) Property Factors Obviously, the age of the building, as well as its services (e.g. lifts, and lobby) and how it presents matter. At the individual property level, the most important factor in determining a property’s value is its specific attributes. Zoning and neighbouring buildings Development potential
to bring out their best in this commercial real estate arena. The factors quoted prior will definitely help one
To find various opportunities for commercial real estate for sale or lease in South Melbourne, explore https://www.commercialproperty2sell.com.au/real-estate/vic/south-melbourne/ 1300 556 121