Does any1 know what factors need to be considered when valuing a commercial property?
Working capital. The most important facet in considering purchasing commercial property is how it affects the owner’s working capital. The initial investment of the purchase can impede the business’ working capital, restrict expansion opportunities and affect the business’ ability to operate during an economic downturn. Functional obsolescence. Over time, business processes change and demands fluctuate. A building may become functionally obsolete if operations change due to advances in technology or other factors. Likewise, if the workforce size increases, space configuration requirements may change, necessitating significant investment in a building’s reconfiguration. Therefore, it is important to consider a building’s construction and its flexibility when it comes to remodeling. Economic obsolescence. Does the building have enough size and amenities to reflect the company’s image? Does the age of the building affect the ability to produce revenue in concert with the company’s project
