The average Topeka commercial rent is about $75 per square foot. As a landlord, you can expect high returns on commercial investments, but you need to conduct a smart investment property analysis to turn the highest possible profit.
Here, we're going to discuss:
- What a commercial property valuation is
- Factors that influence real estate value
- Top property appraisal methods
Read on to learn the ins and outs of valuation strategies in Kansas.
What Is a Commercial Property Valuation?
A commercial property valuation estimates the value of a commercial building. These properties include:
- Office buildings
- Retail shops
- Restaurants and bars
- Warehouse space
- Industrial buildings
Valuations let you know:
- How much the property is currently worth
- How it falls into Topeka real estate market trends
- What renovations could improve the property value
- How much rent you can reasonably charge to tenants
- Whether maintaining the property is worth the rental income vs whether you should sell
Professionals should conduct an investment property analysis. It's not something to DIY. Experts have a comprehensive and nuanced understanding of market trends and can perform a well-informed accurate analysis.
They'll:
- Come look at the property in person
- Take notes on what they see
- Snap photos of the space
- Give you a comprehensive valuation report
Determining Commercial Real Estate Value
There are several factors that matter when assessing the value of commercial real estate. Your property's location is the first thing that experts look into. Higher-value properties will be:
- Accessible to local markets
- Easy for potential tenants and their employees to get to
- Near big business districts
- In locations with good economic conditions
Buildings with high commercial real estate value will also have some key property characteristics and amenities, including:
- Good, solid construction
- Quality infrastructure
- Outdoor spaces
- Large sizes
- No bad conditions like caving ceilings or foundational problems
- Well-constructed stairs and accessibility ramps
- Good zoning and development potential
Basically, the building's value will improve when it's clean and nice to exist in. Safety features are a must-have and it should meet all legal safety requirements and regulations. If it doesn't, you'll need to upgrade the property before it becomes usable.
Valuation Strategies for Rental Analysis
Kansas professionals use three common property appraisal methods:
- Cost-approach valuation that estimates how much it will be to rip down and replace the property
- Sales comparison valuation that juxtaposes the property to similar buildings that have recently sold to buyers
- Income approach valuation that looks into the property's potential to get you rental income
If you're catering to the Topeka rental market, income-approach valuation is likely the right choice to meet your needs.
Appraise Your Topeka, KS Property
Now that you know the ins and outs of commercial property valuation, it's time to see how much you can profit from your Topeka rental. PMI Advisory Group is committed to offering top-notch property management services including an upfront investment property analysis.
If you're curious how much you could make from your rental when it's well-managed, we'll look into the numbers and crunch them for you. Get a free rental analysis today to learn how much passive income is in your future!
