According to the National Association of Realtors, Albany has a stronger commercial real estate market than the national average. Though commercial real estate has taken a hit in the past few years, you're less likely to struggle to fill vacancies here in upstate New York.
That said, you'll still need to make calculated decisions to incentivize commercial tenants. The goal is to provide competitive rental rates without undermining your profits or alienating renters.
We're here to share our top commercial property valuation tips for Albany investors. Read on to learn how to determine your commercial property worth and set a competitive rental price.
Choose the Right Appraisal Method
In commercial real estate, there are a few key real estate valuation methods to consider. The one you use should reflect the type of commercial property you manage.
For example, the income approach involves assessing how much income a business can generate in your location. This is ideal for retail centers and office spaces.
The cost approach assesses how much a business would have to spend to use your space. This works best for industrial buildings and warehouses.
Build Stronger Comps
No matter which appraisal method you use, you'll also need to assess the maximum amount of rent to charge to remain competitive. This involves comparing your property to similar properties.
To build stronger comps, don't just look at all properties in Albany that have the same use and size as your building. In commercial real estate, location is key. Narrow down your search to buildings in your neighborhood or within a one-mile radius.
Assess Areas for Improvement
Your commercial property worth will fluctuate based on things like condition and amenities. If you want to increase value, assess how much you can invest in improvements.
Something as simple as a few aesthetic improvements can help. A fresh coat of paint, new floors, and better landscaping can make your property appear newer and more appealing to tenants. With a larger budget, focus on things like sustainability, parking, heating, and cooling.
Consider Alternative Uses
What if you run your property valuation in Albany and don't feel satisfied with your current income potential? One option is to consider alternative ways to market and use the property.
For example, office buildings are currently some of the hardest to fill. Converting an office into retail or warehouse space can help you attract more tenants. However, you'll need to make sure you're compliant with Albany zoning first.
Get Commercial Property Valuation with PMI Capital District
Albany's commercial real estate market is stronger than average. However, investors will still face challenges when renting out commercial spaces in 2024. Start with a commercial property valuation to maximize profits without sacrificing your competitive edge.
At PMI Capital District, we have a diverse portfolio of client properties, from office buildings to warehouses. Using state-of-the-art technology, we help investors turn struggling properties into reliable income sources.
Ready to get started? Contact us today to get your property valuation and learn more about our services.
