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It's no secret that commercial real estate hasn't recovered since the pandemic. NAR shows higher vacancies and lower interest in office, retail, and industrial properties as recently as May of this year.
Does that mean that now is a bad time to invest in commercial properties in Lafayette? While the risk may be higher, the cost of purchasing these properties is lower. With the right portfolio management, it may be a risk worth taking.
Reducing vacancy rates in a tough market starts with proper commercial property valuation. Read on for our guide to commercial real estate appraisal in Lafayette, LA.
Assess Property Strengths and Weaknesses
To begin your investment property assessment, start by listing your property's strengths and weaknesses. Strengths may include things like:
- Eco-friendly appliances
- On-site parking
- Recent renovations
- High-power central heating and cooling
Weaknesses may include things like:
- Floor plan layouts that limit flow
- Unaddressed property damage
- Limited natural lighting
Think from the perspective of a potential tenant and what they'd look for in a commercial lease. How would the condition of your property impact their operations?
Build Location-Based Comps
Taking a closer look at your property also enables you to build better comps (aka comparisons). The purpose of comps is to assess how much commercial tenants in Lafayette are willing to pay to rent spaces with similar:
- Usage
- Square footage
- Amenities
- Floor plans
- Aesthetic qualities
Narrow down your list of comps based on location, aiming to find at least three similar properties within one to five square miles. Location plays a huge role in income potential for business owners and therefore affects what they're willing to pay for commercial space.
Consider All Possible Uses
Office space is arguably the hardest to rent out in Lafayette in 2024. If you purchased an office building in the city, consider all possible uses. Can you convert your property to something more profitable and if so, how much would it cost?
Before you start a remodel, make sure you understand Lafayette zoning laws. You can submit your property for rezoning through the Lafayette Zoning Commission, but this is a time-consuming process. If possible, stick to conversions that meet existing zoning requirements.
Partner with Commercial Property Experts
There are several different valuation methods for commercial properties, and our approach is to combine all of them. If you want an accurate valuation that doesn't overlook any income potential, consider partnering with PMI Integrity.
Commercial property valuation is only the first step. Hiring commercial property managers can also boost your leasing process, tenant relations, property maintenance, and more. In a tough commercial market, this kind of support can make a huge difference.
Get Lafayette Commercial Property Valuation from PMI Integrity
What if you could get commercial property valuation from experts in Lafayette property market analysis? With PMI Integrity, you can.
PMI Integrity is one of Lafayette's only full-service real estate asset management companies. We provide everything from sales support to ongoing property management, combining the latest technology with a human touch. Get started with your free rental analysis today.
