Most important aspect of a commerical property

[collateralappr]

What is the most important aspect of a commercial property. I would think that the location of the property is the most important and is no different than a residential property. The MBA is stating that income is the most important aspect of a commercial property.

The location of the property would drive the income.

If anyone has a sources as to where I can find this answer to print out, I would be greatful.

 

[PL1957]

What is the most important aspect of a commercial property. I would think that the location of the property is the most important and is no different than a residential property. The MBA is stating that income is the most important aspect of a commercial property.

The location of the property would drive the income.

If anyone has a sources as to where I can find this answer to print out, I would be greatful.

I agree with the MBA.

You give me a good income stream and I don't care if you're located in the middle of nowhere. It's all what flows to the bottom line.

 

[Wayne Tomlinson]

Investment or commercial property does not often sell because it is pretty or has good curb appeal.

Show me the money!!.

Go with the MBA.

Wayne Tomlinson

 

[DTB]

While quantity of income is a critical factor, so is quality of income. Location will have a great influence on both. Appreciation will also be attributed to locational factors as will future income growth.

From a resi guy.

 

[PL1957]

While quantity of income is a critical factor, so is quality of income. Location will have a great influence on both. Appreciation will also be attributed to locational factors as will future income growth.

From a resi guy.

Quality of income IS important. Currently, the preferred quality (at least in this region) is the US Dollar. However, the way things are going, that preference may change to Euros, Pounds or even Loonies.

In all seriousness, the income that a property generates tends to be reflective of all factors that affect value. Age, condition, location, market strength, etc. will all be reflected in how much a tenant is willing to pay to occupy the space for a given period of time.

Location is a very qualitative type of adjustment - amount of actual rental income is usually a cold, hard, fact.

 

[DTB]

Quality of income IS important. Currently, the preferred quality (at least in this region) is the US Dollar. However, the way things are going, that preference may change to Euros, Pounds or even Loonies.

In all seriousness, the income that a property generates tends to be reflective of all factors that affect value. Age, condition, location, market strength, etc. will all be reflected in how much a tenant is willing to pay to occupy the space for a given period of time.

Location is a very qualitative type of adjustment - amount of actual rental income is usually a cold, hard, fact.

All true PL.
I was coming from the perspective of things that can't be changed, which would be location. The other items condition, management, effective age all are within the realm of operator "error" and a new operator could have some impact.

Guess I had my investor hat this afternoon, in general I agree with your post.

 

[hastalavista]

What is the most important aspect of a commercial property. I would think that the location of the property is the most important and is no different than a residential property. The MBA is stating that income is the most important aspect of a commercial property.

The location of the property would drive the income.

If anyone has a sources as to where I can find this answer to print out, I would be greatful.

I thought the use of a property might drive income.

 

[Howard Klahr]

I thought the use of a property might drive income.

Yes grasshopper you are correct, but income drives return/yield

 

[Mountain Man]

Show me the $$$.
Being in a family of real estate people and investors, we have properties in areas where I personally would NOT live. But they make money, and have a good stable income. Therefore, I don't care beyond the income they can generate.

 

[Michigan CG]

Everyone is in agreement here....QUALITY and QUANTITY of the in the INCOME stream. You must also consider the DURABILITY of the income stream. Will the income last for a reasonable amount of time?