In terms of Denver commercial real estate
, there are plenty of things which can impact the valuation of your preferred property. Whether it be the neighborhood it is located in, the current market trends, the type of building, or the condition of the building itself, there are many factors which can clearly impact the value of your property. However, there are factors in the market which can impact your property’s value which are not as obvious. These are things which may not be readily apparent to a casual investor in the commercial real estate space, but can certainly impact the overall value of your investment. Here are some of the unexpected factors which can make a dent on your commercial real estate property.
Is the Building Considered to be Historic?
Before you dive head first into a project that looks to be a promising opportunity to renovate and rebuild, you need to think about whether the property is considered historic by the local government. This can severely impact your ability to make significant renovations to the building, as you might end up being hampered and unable to make the changes you would like.
A recent local example is the owner of Tom’s Diner, who was aiming to sell his property to a developer who intended to demolish the building and put up a completely new structure in its place. Unfortunately for Tom, there was a movement which decided this would harm the neighborhood and made a push to have his building listed as historic. Ultimately, this restricted the developer from building anything in its place and restricted Tom’s options in terms of selling. Be sure to research whether this might impact your preferred building before you get too involved in the buying process.
Has there Been a Violent Crime on the Property
One thing which can also impact the value of your commercial real estate property is if there has been a crime, such as a murder, committed on the premises of your property. This tragic act is not only something which can impact businesses located at the property, but it will also impact the value of your property. You will need to disclose to any future buyers about this occurring in the past, providing you with an additional hurdle in terms of the selling process. As a buyer, you might be able to receive a significant discount as a result.
If you’re seeking a qualified and knowledgeable real estate firm in the Denver area to assist you through the property investment and development process, Elevation Group is your preferred choice in the mile high city. We offer expert advice and help from start to finish in order to ensure your commercial or residential project is a smooth success, providing you with the needed peace of mind to make your dreams a reality. Contact us today to begin the process of building your dream property development.