Value Analysis

Value Analysis

Maximize Your ROI With an Investment Analysis

Investment analysis is valuable for anyone who’s interested in making a commercial real estate investment, whether you’re preparing to buy your first commercial property or you own several commercial real estate properties. Our real estate investment analyzers will help you understand if you should invest in a property or avoid it in favor of better opportunities.

How Do You Calculate the Value of a Commercial Property?

There are many factors to consider when buying or selling a rental property, and small shifts in these factors can have a big impact on a property’s value. Our real estate investment experts have studied local real estate trends for the last decade and are constantly monitoring things like market performance, projections and economic outlooks in order to give you wise advice about your commercial property investments. Consider these factors when you calculate the value of a commercial property:

Location

If you’ve heard it once, you’ve heard it a thousand times — location is a key factor in determining the value of a property. When you’re considering a commercial real estate property’s location, don’t just think about if it’s urban or rural or if it’s located in a desirable area. Consider what shopping areas are nearby, and look at schools, medical clinics, bus routes and more.

Size, Facilities and Amenities

The type of building and number of units has a large impact on the property price, upkeep costs and overall value. Extra facilities and amenities like a laundry room, pool, club house or gym also impact a property’s value.

Supply and Demand

Markets are constantly shifting. Sometimes, the market is saturated with great commercial properties up for sale. Prices may be lower, and the market may favor the buyer. Other times, there is a lot of competition for a few properties, and it might make more sense to wait. Our real estate investment analyzers are prepared to bring great insights about current and projected supply and demand.

Interest Rates

Interest rates are also always shifting. Getting a low interest rate on a loan can make or break an investment. If you’re thinking about buying a commercial property and you qualify for a low interest rate, it’s worth checking in with a commercial real estate expert to make sure your next property investment is the best decision for you.

Past Market Performance

Historical data is an essential part of any commercial real estate investment decision. Take a look at historical rental data and property information before you jump into an investment, or reach out to our team to access valuable data about past real estate market performance. The Katalyst Team has been collecting local market data for years and publishes quarterly newsletters with information about the Des Moines commercial real estate market.

Economic Outlook

The state of the economy can have an enormous impact on commercial real estate prices and property values. Our team can’t see the future, but we do spend time researching economic outlooks, various market scenarios and projected outcomes. Talking to a member of our team can help you decide if it’s a good time to invest in a certain type of property, or if it’s wiser to be cautious.

How Do You Determine Fair Rental Value for a Property?

Just like determining the overall value of a commercial property, determining fair rental value for a property can be challenging. When you own commercial real estate, it’s important to set rent prices appropriately, but it’s not always easy. If rent is too high, your vacancy rate will be high and you’ll lose revenue due to units sitting empty. If your rent is too low, you’re leaving money on the table and missing out on profit you could reinvest into other opportunities.

If you’re wondering how to determine fair rental value for a property, consider some of the above factors, and read our tips for determining fair and profitable rental terms:

  • Research what similar properties in the area are charging for rent.
  • Compare your property’s amenities and special features to see if there are things to set you apart.
  • Consider making small upgrades and updates to your units to increase their value.
  • Look at what stores, attractions and services are nearby for your tenants’ convenience.

Why You Should Meet With a Real Estate Investment Analyzer

Ultimately, connecting with a commercial real estate professional may be the best way to make sure you’re considering every important factor when you invest in rental properties. Reach out to our team today to learn essential insights from a real estate investment analyzer.

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