Have you ever wondered why the cost of a piece of land is priced the way it is? Understanding how commercial land near St. Cloud, MN is valued can be difficult, so we’d like to clear up a few ways property is priced, and why they make sense.

If you’re looking for fairly-priced commercial land for sale or lease, get in touch with our team at Miller Properties today!

Variables

Size/Shape

Land size is key to any property valuation. The more land is available on a single plot, the higher value it can be used for and sell for.

Shape also plays an important role. Typically, square- or rectangular- shaped parcels will have the highest value, since you can use them most readily. Long strips or jagged property lines have low utility, and thus lower value.

Topography/Geography

Topography can sometimes be overlooked, but if a parcel is not flat it may need to be cut down or filled in to provide a good building or parking lot foundation. This can increase costs, and lower the value of a piece of commercial land near St. Cloud, MN.

Likewise, the geography can also affect value. Underlying rock or water can interfere with foundations, or may not be suitable to construct on for other reasons. This can be expensive and time consuming to work around.

Utilities/Fees

If utilities aren’t present, bringing them to the site can be an additional cost which needs to be evaluated. Even if utilities are present, they may not be high enough volume for your use.

Any fees on the property can also affect the value. Special assessments, local taxes and other development costs can change the price.

Location/Market

Market demand is going to be a huge variable for the value of commercial land near St. Cloud, MN. Based on the location and current planned use in the area, you can make some educated guesses or purchase a detailed study of the market to determine what the future demand might be in the area for your type of use.

Sale Comparison Valuation Process

Sales comparison is the standard way to value commercial land near St. Cloud, MN. An analyst can look at the active listings of raw land in the area as an indicator of value. These aren’t closed transactions, so they are usually a bit higher than the final negotiated price depending on how fast the market is moving.

Depending on the market, it may be hard to find similar properties which have recently sold, and so this method can be hard to utilize. It’s best to view three to five similar properties to develop a good valuation.

Have you ever wondered why the cost of a piece of land or a commercial building is priced the way it is? Understanding how commercial property is valued can be difficult, so we’d like to clear up a few ways property is priced, and why they make sense.

If you’re looking for fairly-priced commercial properties for sale or lease, get in touch with our team at Miller Properties today!

1. Rebuild Cost

When determining the value of commercial property, the rebuild cost will likely be part of the discussion. If the entire structure were destroyed by accident, natural disaster or other means, what would be the cost to rebuild it?

The rebuild cost is based on building the structure entirely from new materials and replacing what was. In order to arrive at a fair value, you have to determine the current and future cost of the land, materials, and labor needed.

You may look at a building and believe it’s only worth $250,000, but it might cost $375,000 to rebuild it as-is, which pushes the sale cost higher.

2. Recent Area Sales

Another method of figuring out how commercial property is valued is by using the market approach. Here you take recent area sales data for surrounding properties. By looking at the amenities and features of each property and comparing them against yours, along with their sale price, you can begin to build an accurate picture of the value of your commercial building or property.

Depending on the market, it may be hard to find similar properties which have recently sold, and so this method can be hard to utilize.

3. Associated Costs

One more major way of figuring out how commercial property is valued is by looking at the associated costs. With the commercial building or property you’re looking at leasing, are there utility, maintenance, parking or other costs you’ll be responsible for?

These associated costs can cause a property’s value to rise or fall, so it’s important to determine up front if they’re rolled into a lease or not so you can make an accurate comparison between your options.

When leasing commercial property, there are a number of factors you’ll need to keep track of to ensure the property fits your needs. We’ve put together a list below for you to check while negotiating your contract.

If you’re looking for fairly-priced commercial properties for sale or lease, get in touch with our team at Miller Properties today!

1. Real Space

The first factor to track when leasing commercial property is to determine the true amount of space you have available to your business. When leasing a space, the usable square footage is usually less than the rental square footage.

In some buildings, you may have use of common hallways, bathrooms, storage areas or other spaces which aren’t included as part of your rental square footage.

2. Lease Term

Be mindful of what your company needs when discussing lease terms like amount and length. The longer your lease term is, the more power you’ll have in negotiating your monthly payments. The shorter your lease term, the less flexible the leasing company will be.

A longer lease also locks your business into the space longer, which means you’ll be less able to respond to the need for more space if your business grows.

3. Associated Costs

When leasing commercial property, be aware of the costs associated with the property which are outside of your normal rent payment. This may include maintenance costs, insurance, property taxes, utilities and more.

It’s important to have a clear picture of which costs you will be responsible for.

4. Improvements

It’s easy to overlook improvements when leasing commercial property, but you’ll need to look at these issues in your lease.

You may need to make improvements or modifications to a space to serve your needs, like new seating, carpets, cabinets and more. It’s important to know whether you need consent to make changes, and who owns those improvements after the lease ends.

There are a lot of things to keep in mind when searching for a commercial lease partner. The location, pricing, amenities provided, even the parking lot available to your employees and clients.

Those are definitely great things to look for, but there are a number of other traits we think are also important, which can often be overlooked in the rush to find the perfect property. Here are the four qualities we think are extremely important for a commercial lease partner.

Get in touch today to work with a great commercial lease partner!

1. Variety Of Properties

At Miller Properties, we believe having a variety of properties across the greater St. Cloud area allows us versatility not many other commercial lease partners can match.

When choosing your first lease from us, you have plenty of choices, but where this really comes into play is when your business (hopefully) expands, as you’ll be able to work with a trusted partner to move into larger space very easily!

2. Personal Touch

At Miller Properties, we’re a family. We’re a small company with a huge impact on the business and consumer community in the greater St. Cloud area, and we’d love to work with you and get to know you and help your business!

3. Professionalism

From answering the phone to taking you on a tour of a commercial suite, our commercial lease team is steeped in professional care. We want to give you the best experience possible because we thrive on good referrals.

4. Maintenance/Cleanliness

Our goal is to make sure you and your clients have a great first impression of Miller properties. We employ full-time maintenance staff, with on-call coverage outside of normal business hours. Our team inspects our buildings and properties on a regular basis, paints, washes windows and more.

Get in touch with our team today to start the search for your business’ new home.