You've seen the daunting headlines that half the offices in downtown Pittsburgh could be vacant in a few years. You're starting to wonder if buying a commercial property in 2024 was not your best choice.
Before you hit the panic button, let's find out how much your property is actually worth to renters. Yes, commercial property owners are facing new challenges, but that doesn't mean you can't still turn a profit.
Not sure how to get started? Read on to learn the right way to conduct a commercial property valuation to accurately assess your Pittsburgh property.
Assess Your Property's Condition
Before you can start thinking about rent collection strategies, you need to recognize what you have to offer to commercial tenants. Start by assessing the basic features of your property like:
- Square footage of each rentable unit
- Condition of plumbing and electric
- Number of parking spots
You'll also want to think about the desirable features that make your property stand out. For example, can tenants save on electric thanks to solar power? Does your location provide a seamless commute?
The features and condition of your property will play a huge role in how much renters will pay.
Create Reliable Comps
After you've accounted for things like square footage and amenities, it's time to build reliable comps. The key is to make sure that you're looking at similar properties in your neighborhood, not all over the city.
As we mentioned earlier, there's a lot of fear about the state of our downtown real estate. The same isn't true of up-and-coming areas like East Liberty or city favorites like Bloomfield.
Find at least three properties in your region of the city that have at least three things in common with your property. Comps are one of the most important property valuation methods because they help you account for the competition.
Consider Upgrades and Alternative Uses
Maybe you're not happy with your property's current condition or value. One of our best property investment tips is to always think about commercial maintenance in terms of value-add upgrades.
What are your biggest problem areas? Those are going to offer the most room for improvement. Both structural and aesthetic improvements can make your property more desirable.
Another option is to consider alternative uses. For example, if your office space isn't gaining traction, consider the transition to academic or retail space. Keep in mind, however, that Pittsburgh zoning laws will determine what you can and can't do with your property.
Get Accurate Commercial Property Valuation with PMI The Burgh
It's a tough market for commercial property owners in Pittsburgh and across the nation. An accurate commercial property valuation process can shed light on what's possible for your investment. PMI The Burgh is here to help.
At PMI The Burgh, we offer more than your average property management company. Not only are we residential experts but we've learned how to take our approach and expand it to include commercial real estate. Contact us today to partner with local rental experts.
