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Income Approach To Valuating Commercial Property
There are several ways to calculate the market value of properties, of course, and particularly commercial properties.  In any market, but especially the current commercial real estate market, it's critical to get that value right if we intend to find a principal!
Investors of Mohave County AZ commercial real estate  are most likely to be picking up commercial buildings these days, and their chief interest will be in three things:
How much positive cash flow is there now? How much positive cash flow is realistic?
What is the degree of risk involved? Valuating using cap rate and an income approach to value will provide good starting points.
For a property that has been vacant longer than 3 months:
Determine market rents for the property. You may need to do a rent survey to find out what tenants are PAYING, because any rate can be asked and many are negotiated down.
This is not an easy step as the parties who have and know this information are often not available or willing to discuss the terms of their lease.
A chat with the leasing office for a large multi-unit property that is mostly occupied (meaning the rents are realistic) could be your next stop.
Then, search for properties ... more

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