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Three Types of Commercial Real Estate Obsolescence

Property Metrics

One of the unique challenges of commercial real estate investment is that markets, types of property , return expectations, and physical environments are in a constant state of change. The real estate term for this type of risk is “obsolescence” and there are three types that CRE investors should be aware of.

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Navigating the Appraisal Process – What You Need to Know

Simonson Real Estate

An appraisal is an objective, impartial, and unbiased opinion about the value of real property prepared by a State Licensed or Certified professional appraiser. Under fee simple ownership, a property owner may occupy the property and have the right to sell, lease, mortgage, or give an interest away. Note that U.S.

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How should appraisers approach short-term rentals?

DataMaster

However, the GSEs did not make a parallel change to the property qualification side of the lending decision. While STR Income is allowed on the borrower’s income statement, the market rents for the collateral still needed to be based on longer-term leases. The purchase of real property for the purpose of investment is not new.

Appraisal 148
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Helping Lenders Navigate the Commercial Real Estate Appraisal Process

Simonson Real Estate

Under fee simple ownership, a property owner may occupy the property and also has the right to sell, lease, mortgage or give an interest away. Examples: Owner occupied properties don’t have a lease in place and so the property is appraised based on market rents. Clarify What Value or Values are Needed.

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How should appraisers approach short-term rentals?

DataMaster

However, the GSEs did not make a parallel change to the property qualification side of the lending decision. While STR Income is allowed on the borrower’s income statement, the market rents for the collateral still needed to be based on longer-term leases. The purchase of real property for the purpose of investment is not new.