How do you define a prime location?

[musicgold1]

Ok. Maybe I did not use my words correctly. Let me ask the question differently. What are the three most important location attributes, in your mind, that make a property more desirable than other properties?

Here is what I could come up with:

1. Office - proximity to transportation, proximity to an office node,
2. Retail - ease of access, distance from population
3. Industrial -proximity to highways, distance from a cargo hub,
4. Apartments - proximity to mass transit,
5. Hotels - proximity to a tourist location/business node

Thanks.

 

[J Grant]

Ok. Maybe I did not use my words correctly. Let me ask the question differently. What are the three most important location attributes, in your mind, that make a property more desirable than other properties?

Here is what I could come up with:

1. Office - proximity to transportation, proximity to an office node,
2. Retail - ease of access, distance from population
3. Industrial -proximity to highways, distance from a cargo hub,
4. Apartments - proximity to mass transit,
5. Hotels - proximity to a tourist location/business node

Thanks.

It can also mean, in local parlance, "prime", as in close to a very desirable amenity....close to the beach, close to a midtown hip urban district etc.

The red is from my prior post on this thread, and your list illustrates what I sated...that one of the elements of a prime location mean being close to an amenity which is very desirable to that particular property, be it commercial or residential....your list looks generic like it came from a textbook and has to be adapted to local individual properties, but the general concept is correct but only partially so..

For example, Apartments, close to mass transit is a very generic description that can fit a lot of apartment buildings, and while it may make them more rentable, may not make any one of them prime (prime as in superior, or very desirable, which is what the word implies)

You can have 10 apartment buildings close to mass transit, but 2 of them are considered "prime"...perhaps the 2 prime location buildings are right at the bus stop instead of a four block walk (if being right at a bus stop is of PRIME VALUE to area renters), or the 2 buildings considered prime location are near mass transit but also have great views because of high elevation, thus, renters pay more to live in them, the apartments rent fast and are rarely vacant, thus, the building derives more income then other area apartment buildings and would be wroth more when sold.

Prime location is a combination of "better" than other properties of its type, "worth more" in the market, and in "high demand" by users of that type of property.

 

[J Grant]

Ok. Maybe I did not use my words correctly. Let me ask the question differently. What are the three most important location attributes, in your mind, that make a property more desirable than other properties?

Here is what I could come up with:

1. Office - proximity to transportation, proximity to an office node,
2. Retail - ease of access, distance from population
3. Industrial -proximity to highways, distance from a cargo hub,
4. Apartments - proximity to mass transit,
5. Hotels - proximity to a tourist location/business node

Thanks.

I stated that in my prior post...that one of the elements of a prime location mean being close to an amenity which is very desirable to that particular property, be it commercial or residential....your list looks generic like it came from a textbook and has to be adapted to local individual properties. The general concept is correct but only partially so..

For example, Apartments, close to mass transit is a generic description that can fit a lot of apartment buildings, and while it may make them more rentable, it more means a good location rather than a prime location. Prime has the connotation of being superior or outstanding, highly choice compared to others of its type.

You can have 10 apartment buildings close to mass transit, but 2 of them are considered "prime location"...perhaps those 2 buildings are right at the bus stop instead of a four block walk from it (if being right at a bus stop is of PRIME VALUE to area renters), or the 2 buildings considered prime location are near mass transit but also have great views because of high elevation, thus, renters pay more to live in them, the apartments rent fast and are rarely vacant, thus, the building derives more income then other area apartment buildings and is worth more.

Prime location is a quality that makes it "better" than others due to a highly superior locational amenity, which makes it "worth more" in the market, and in "high demand" by users of that type of property.

 

[Terrel L. Shields]

I don't know maybe it's like defining ****...I know it when I see it...

I see some interesting things. You would think that WalMart who are now building these Neighborhood stores and Express stores... would pick the absolute best sites.

To the contrary their sites are often on lower valued land (but subsequently shoots the price of nearby land thru the roof). The trick is their name attacts the customer and by accessing via entry road and selling off the valuable frontage to fast food, phone, and gas stations, they reduce their property taxes. Lowes and Home Depot have adopted that policy as well, often you drive past the most expensive land to get into their parking lots.

Ditto for some top notch hotels, which may be tall enough to be visible from a nearby busy road. The hotel in a non-resort market would seek a site with high traffic count but I see many such choices prove to be difficult to access. If stuck in one of those places where I have to circle 3 times around it to get in, it gets on my list as places I won't stay again.

Last I see businesses pay huge premiums for a lot on a busy intersection and then watch them fold or perform poorly. Why? Again, if traffic in a certain intersection is too high, access is dangerous and difficult. Many customers simply will drive on to a less difficult to access place.

So the factors that impact such "prime" locations are large and to the casual eye, two locations that appear equal, and may even sell similarly but are vastly different.

One last example. Our town recently had the highway dept. reconfigure the roads from 5 lane to a divided highway with limited turn lanes....great. We watched several businesses fold up on the south lanes...it seems the worst affected. And now we have wrecks far worse than before. I was hung up in traffic over one a few days ago.

The moron engineer who designed the highway failed to leave adequate room for cars to make left turns at the same time. If a truck is pulling a small trailer they will crash into the on-coming left turning automobiles or run up on the curb.. It has to be the same stupid fool engineer that is reviving these Chinese Firing Squad "traffic" circles. Thank the Lord they didn't add one of those ....

 

[Mike Garrett RAA]

Prime time....isn't that a sports program?

Prime and Choice...doesn't that refer to meat?

Prime is not part of my vocabulary for residential appraisal ... but it might be if I was doing commercial?

 

[Lee Lansford]

Hi,

While I am aware of the famous real estate adage: location, location, location, I often get confused when someone asks me to comment on a property's location. Also a lot of people like to call their own properties situated at prime locations.

1. What criteria should one use to decide if a property's location is a prime location? I am aware that the criteria is going to be different for different property types.

2. Is there a book or website where I can read more on this topic?

Thanks,

MG

Define beauty.

Once you do that, I'll come back and assist you with your questions.

 

[sputnam]

'Prime location' is something that Realtors say when they are marketing the property. It's not really an appraisal term.

 

[Elliott]

I call it 100%.

 

[musicgold1]

'Prime location' is something that Realtors say when they are marketing the property. It's not really an appraisal term.

Do appraisers assign/attribute any value to a property's location?

 

[CANative]

Do appraisers assign/attribute any value to a property's location?

No. But the market certainly does.