You're facing property valuation challenges in Corporate Real Estate. How can you navigate them effectively?

2 Valuation Methods

Understanding different valuation methods is key. The three main approaches are the cost approach, which calculates what it would cost to replace your property; the sales comparison approach, which compares your property to similar ones recently sold; and the income approach, which is based on the income the property generates. Each method has its advantages and should be selected based on the type of corporate real estate you're dealing with. For instance, income-producing properties might be best suited for the income approach.

3 Legal Factors

Legal factors can also influence your property's value. Zoning laws, for example, determine what can be built or how a property can be used, which can significantly affect its valuation. Additionally, potential changes in local legislation or property taxes should be on your radar. Stay informed about these factors and consider consulting with a real estate attorney who can provide insights into how legal considerations might impact your valuation.

6 Risk Management

Finally, risk management should be an integral part of your property valuation strategy. Consider economic and market risks, such as fluctuations in interest rates or changes in the business climate, that could affect your property's value. Develop a risk profile for each asset and use it to inform your valuation approach. By anticipating potential risks and incorporating them into your valuation, you can make more resilient decisions for your corporate real estate portfolio.