Real Estate Investment Essay Example | Topics and Well Written Essays - 1500 words

Real Estate Investment - Essay Example daries include the price of comparable properties in the area, the age of the building, the prominence of the space, the types of tenants located in the vicinity, specific characteristics of the property, economic and physical factors. These are some of the factors that the valuer has to consider in making a decision on the market rent. The use to which the property is to be leased determines the physical factors that are desirable. However, there are some desirable physical factors that will greatly impact the decision of a fair market rent. These include the location of the property, its visibility and its topology. The valuer has to weigh all these factors in deciding on the market rent. The lessee will also take physical factors into consideration in making a decision on whether to accept the property. Lessees are usually attracted to commercial properties that are highly visible from various locations. They want their potential customers to be able to see them. If the area is a busy thoroughfare then the property should be placed in such a way that it can be easily seen. Properties that are located along major commercial highways are great for retail outlets. However, the area of the shop frontage is an important determinant of market rent. A shop frontage with adequate customer parking and one that facilitates the effective and efficient delivery of goods will command a higher market rent than one that does not have these facilities. The topology of the land is also important as tenants and customers want to access the property with ease. The topology that is suitable for a residential property is not suitable for a retail property and so a level area is preferred. The physical condition of the property is also important as well. No tenant wants to operate in a facility that is not being properly maintained. In the general vicinity of the property, the other buildings need to have a good frontal appearance. A good frontal appearance suggests that the area