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Commercial real estate appraisals differ from residential appraisals, so if you have ever bought a house and experienced the appraisal process, it will be different for commercial real estate. Commercial appraisals are done for multifamily properties with 5 or more units or any other commercial property type like industrial properties, office buildings, retail, or hotels, etc.
Retail properties have been a mixed bag as of late. They took a hit during the pandemic when things were shut down, but if the retail business had an e-commerce presence they were able to scale accordingly. If you are considering your first retail property investment, here are just a couple of things to consider.
Just like commercial real estate properties come in all shapes and sizes, so do their rent rolls. When it comes to purchasing or refinancing a commercial property, the lender always requests to see the rent roll. The rent roll for a commercial property can actually determine how high of leverage a lender is willing to go on a loan.
The hospitality industry has taken a beating the past couple of years. This has led to some investors converting hotels into multifamily units. The idea seems logical considering multifamily housing has still been in demand during the pandemic but here are some things to consider before you jump in.
