Forums / Property Investing / Commercial Property / Median Prices for Commercial/Industries/Land Assets

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of PropertyGuru31PropertyGuru31
    Participant
    @propertyguru31
    Join Date: 2018
    Post Count: 8

    Hi all,

    Just wondering if owners of other types property assets such as commercital, industrial, and land also use ‘median prices’ as a measure as part of their strategy for investing?

    I know it is used typically for residential housing by looking at cities and regions/suburbs, but I wanted to understand how investors think about median prices for other types of non-residential assets.

    Thanks.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    It is not a useful measure of productivity. These are commercial assets and valued on their capacity for output.

    Capacity for production is determined by several factors (planning controls):
    Zoning: A property with a IN1 zoning (general industrial) would be more valuable than one with and IN2 (light industrial) zoning as the types of uses are more diverse.
    FSR: How big can you go?
    Type of construction: Does the process require protection from the elements & how much ie lightweight construction or precast concrete or no walls just undercover etc
    Functional obsolescence (are high bays or large column free space desirable for the type of use?)

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.