COMMERCIAL REAL ESTATE LEASE AND SALES COMPS FOR APPRAISAL

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COMMERCIAL REAL ESTATE LEASE AND SALES COMPS FOR
APPRAISAL
Typically, an appraiser will select a minimum of
three recently closed sales that closely resemble
the subject property in terms of location and
relevant characteristics. Then, they make
adjustments as needed to develop a
credible opinion of value. This appraisal method
is called the sales comparison approach. Commercia
l leasing refers to the leasing of commercial
property that authorizes the use of the property
for businesses, offices, retail spaces, and
other commercial reasons. Here, commercial
appraisal helps in setting the value for the
asset, the same way commercial appraisal in Los
Angeles gives the fair value of the property.
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CHARACTERISTICS OF SALES COMPARISON APPROACH
Location and neighbourhood
Geography may directly impact the value of real
estate. It's important to compare homes in the
same neighbourhood rather than those found in
another part of town. Factors considered include
proximity to schools, nearby bodies of water,
parks, highways, and overpasses, as well as
pollution levels.
Recently sold listings
These properties can provide a starting point for
the value of homes in the area. Although features
and the market factor into the sale price,
reviewing property values and recent sales are
good baseline numbers.
Features
A home should be compared with properties with
the same number of bedrooms, garages, and
bathrooms. The comparison should include homes
of about the same square footage on parcels of
land that are about the same size.
Age and condition
It's important to compare homes of similar age as
well as soundness. A home's condition
significantly influences an appraisal. For
example there may be two similar homes in the
same neighbourhood. But if one needs repair. it
can seriously affect its value.
Average price per square foot
Once similar homes are compiled, take each of
their sale prices and divide them by their square
footage. The result yields the cost per square
foot based on the homes in the sales comparison
analysis. Take the average cost per square
foot for all comparable homes and multiply that
number by the square footage of the home being
appraised.
Commercial Real Estate Lease in Los Angeles To
find a commercial real estate lease in Los
Angeles, you can explore various options based on
your specific requirements
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Identify Your Needs First, you need to determine
the kind of property you are looking for to lease
like office space, retail space or industrial
property. But it is important to consider factors
like size, location, budget, etc.
Search Online Platforms Search for online
platforms that have expertise in commercial real
estate listings such as LoopNet, CoStar, or local
real estate agency websites in Los Angeles.
Contact Real Estate Agents First things first,
find brokers or commercial real estate agents who
specialize in the Los Angeles market. These
agents would help you get your desired properties
on lease and give a tour of that as well.
Visit Properties After shortlisting potential
properties, it is advised to inspect the place
and assess whether it meets your needs or not.
Negotiate Lease Terms Negotiating lease terms
can be made with the owner or landlord, which
includes rent, duration of lease, maintenance
responsibilities, or any other clause related to
business.
Review Lease Agreement Terms and conditions of
the contract need to be reviewed to ensure they
meet your expectations and seek legal advice
if necessary, before signing the contract.
Sign Lease Contract After both parties have
agreed, the contract is signed to secure the
commercial property for business operations.
Commercial Real Estate Rent and Sales Comps play
a crucial role in the appraisal process by
providing essential data points for assessing
property values, rental incomes, market trends,
and investment potential. For example,
Commercial Appraisal in Los Angeles helps in
finding the value for property in the urban
area of Los Angeles for potential buyers.