Tampa's business and commercial real estate are thriving right now, making it an exciting time to be a landlord. But that doesn't guarantee you can turn those trends into a profit.
First, you need to get a handle on valuations for your commercial real estate. Read on to learn some of the best ways to secure an accurate commercial property valuation in Tampa, FL.
Get to Know the Local Market
Understanding local market trends can help you make better decisions about your property. These will tell you valuable information about economic trends and property demands that will shape the figure you choose for your valuation.
Good market analysis can also help you predict future trends, ensuring you time any price changes to maximize your profit.
Think About the Income Potential
When establishing a valuation for your property, you need to consider the income potential of leasing it. Look at factors influencing your long-term income, like lease lengths and tenant reliability.
You should also consider whether there is any scope for rent increases in the future, which will depend on the lease terms. Most commercial landlords will favor a steady flow of income over a short-term high rental price.
Think About Upgrade Costs
Depending on the type of property you own, you might want to pay for upgrades or extensions. Consider those costs when establishing a valuation for your property.
Look at the estimated costs of the upgrades you want and whether they will help you command a higher price. If you plan on renting, it's worth getting feedback from commercial tenants to help prioritize the most sought-after improvements.
Run a Comparative Property Market Analysis
A comparative analysis is a systematic process for setting an investment property valuation. To do this, you'll need to study Tampa's current commercial property market and examine prices.
Then, compare these figures against other factors that determine them, such as location, size, and features. This data-driven approach is one of the best ways to arrive at a figure that attracts buyers or tenants.
Speak to Local Experts
Using available data can be helpful when setting a real estate appraisal, but there is often no substitute for talking to people who work in the sector.
Speaking to real estate experts will give you insight into the market, such as how long it takes to secure a buyer and the number of inquiries for each new property listing.
Use Technology
When researching a valuation, you don't have to do everything by hand or via an Excel spreadsheet. Many advanced software tools are now available that can do the number crunching for you.
These tools and the latest AI technology can analyze massive data sets and help predict market trends.
Setting an Accurate Commercial Property Valuation
It takes time to set an accurate commercial property valuation, but the effort is worth it. A slight change in numbers could result in a better long-term profit margin, helping your commercial real estate business thrive.
PMI JCM Realty Group is committed to delivering the highest standards of commercial property management in Tampa, including helping property owners get the best returns. Visit our services page to discover how we can help you.
