GARYANDLANA

Planning to expand your business – commercial space is looking up. The good news is that the commercial segment in real estate, is optimistic and the demand for commercial office space for rent or for sale is now recovering. The stabilization process has now begun in recent weeks. Companies that previously was hesitant and now looking to expand up to position profitable. According to a study conducted by a reliable source, the absorption between 4-5 million square feet of commercial space has been witnessed in the first quarter of 2009, which was higher than the fourth quarter of 2008.

Noida, an acronym for New Okhla Industrial Development Authority), is, without doubt, one of the most developed businesses in India. Indeed, the growing number of offices and complexes Mall has a new face to the residential space in Noida as well. Until some time ago, Noida, because of its association with the East Delhi was not considered as developed as its counterparts, such as Gurgaon.

India emerging as the capital of the world, Noida, as its main operations center has led to increased demand for commercial property for office space to rent in Noida.

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The income approach is often place primary emphasis in assessing a commercial property used to generate income. Estimates of value through the income approach are very sensitive to changes in revenue, expenses and capitalization rate.

Proper execution of a cost analysis approach seems to be, and is technically difficult. Seems easy to properly prepare an analysis of income for the property. However, the analysis proper preparation requires three criteria: 1. an understanding of the value type, 2. accurate data, and 3. precise application of the income approach.

Commercial income property can be evaluated based on property leased for a fee. The fee simple property is appropriate for properties with leases in line with market rent and conditions. Value of buildings leased fee is more appropriate for the properties above or below market rents in the market. Valuing properties with rates lower than market rental based strictly on its real rental rates would diminish its value. Valuing using market rates for hire would overstate its market value.

Precise data is the basis for a reliable conclusion income. This includes information on rental rates, employment rates, new construction, absorption, operating expenses and capitalization rate. Rental rates are usually derived from comparables rent, leases and market data aggregated. The same is true for employment rates. New construction can be obtained from personal observations while doing fieldwork, research and market data aggregated.

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Real estate, as said time and again, has been slowly picking up from where it left off in 1996, that is, aggressive buying by local bred people who are now residing in various parts of the world, particularly the United States of America and Canada regions. Filipinos who have opted to take their talents for better paying jobs abroad have allowed them to consider making investments in local properties, known to be among the affordable and feasible manners of investing for their future and their dependents. There is of course the difference between high-end and low-end sectors, but regardless, the bottom line is one of our basic hierarchy of needs according to Maslow’s hierarchy, that of which is shelter.

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