Commercial strata property evaluation

Aug. 30, 2011 - PRLog -- Whelan Property Group, after established itself as one among the best strata management company in the terms of providing services as buying, selling or leasing industrial and residential strata management properties, now emphasizing on commercial properties according to people’s interest for more benefits.

Most real estate and strata management firms are emphasizing commercial property as great income resource. It is difficult to set a correct cost approach analysis and you have to emphasize on various values before performing accurate analysis such as judging the type of value, understanding the value, checking the accurate data, giving the accurate application of the income approach.

Commercial income properties can be valued based on the leased fee estate. The fee simple estate is appropriate for properties with leases consistent with market rent and terms. Valuation of the leased fee estate is more appropriate for properties with above market or below market rents. Valuing properties with below market rental rates based strictly upon its actual rental rates would understate its value. Valuing it using market rental rates would overstate its market value.

The leased fee features of the property makes easy to value the commercial strata management property because they are consistent with market rent and terms. The leased fee valuation is appropriate when the market rent is above or below market rents.

If you are searching for the accurate data then it only possible through reliable income approach which draws from rental rates, construction rates, capitalization rates and operating expense conclusions. The occupancy rate also matters here a lot. The new construction expenses counts a lot in this approach due to its more field work, research with aggregate market information.

Among commercial strata property evaluations operating expenses are evaluated by line-item basis. The first step of this evaluation takes approximately four months and the other proceedings continue according to it. The industry data are also important to compare the expenses between these commercial, industrial or any business strata communities. At the same time the capitalization rates are count on the basis of recent sales and through the analysis of market participants.

At the same time the direct capitalization strategy and the discounted cash stream analysis is  utilize to calculate  the value for income approach, the gross rental multiplier and gross income multiplier are another methods for estimating the value for income approach in commercial strata property.

About Whelan Property Group

Whelan Property Group is one of the fastest growing Sydney based property firm was established with the aim of reaching towards relevant buyers, reliable sellers of strata management Sydney. Whelan Property is one stop solution for all reality needs starting from buying, selling and leasing or business for commercial as well as residential strata management. Since 2004, Whelan Property is providing gratifying services in the fields of strata management scheme for making itself the most trust worthy strata firm of the world. Whelan Property Group provides its clients with comprehensive strata management services. Fully licensed, the company prides itself on its transparency and professional integrity.

For more details contact

http://whelanproperty.com.au

whelanpress@gmail.com

Company Address

WHELAN PROPERTY GROUP PTY LTD

Level 6/Suite 113,

330 Wattle Street

ULTIMO

NSW

Sydney

2007

PH: - 0292194111

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Whelan Property Group is one of the fastest growing Sidney based property firm was established with the aim of reaching towards relevant buyers, reliable sellers of strata management Sidney. Whelan Property is one stop solution for all reality needs starting from buying, selling and leasing or business for commercial as well as residential strata management. Since 2004, Whelan Property is providing gratifying services in the fields of strata management scheme for making itself the most trust worthy strata firm of the world. Whelan Property Group provides its clients with comprehensive strata management services. Fully licensed, the company prides itself on its transparency and professional integrity.