Commercial real estate. Real estate, whose main purpose is to generate income from rent, divided into four large groups: office, retail, warehouse and hotel.
Office, retail and warehouse real estate are of three classes. Commercial property of the highest quality is classified as "A", it corresponds to the best world standards and are located in commercially viable locations. Commercial property class "In the" properties close to the class "A" in terms of infrastructure, but has differences in one or more of the mandatory requirements. The cheapest commercial property is classified as "C". It's outdated buildings of the Soviet period.
Production estate. Properties intended for industrial production, for sale are not too often, since any manufacture has specific requirements. Usually the company orders the construction of a facility that meets its specific needs.
The rest are still unclaimed mamsha al saadiyat abandoned Soviet factories are so outdated and dilapidated that their reconstruction is more expensive than building a new building, and therefore does not use special demand. And yet, in certain cases, the purchase or lease of existing production facilities can be more profitable than the construction of .
Quite common rent vacant industrial premises in the territory of either closed or greatly reduced production of factories. Most of these production areas can be arranged in industrial parks or business incubators that provide to rent a small or medium size area. They can be adapted for any production, but as a rule, the bare walls.
Industrial area on a large scale to rent is not accepted, as the risk of serious losses if necessary to relocate a large production in a short time if suddenly there is a conflict with the owner of the premises. However small and medium trade you will find on the market many suitable industrial real estate .
The kind of cost.
These Standards establish the appropriate type or types of value to many of the most common assessment purposes. Cost forms the basic principles of measuring value in the evaluation. Cost is not a statement of the methodology used or the condition of the asset involved in the transaction.
Almost always need to combine the form of value with appropriate assumptions or special assumptions that describe the status or condition of the asset at the measurement date. A typical assumption might concern the rights to use the asset, as in the case of "market value rent". A typical special assumption might be related to the fact that the property has undergone certain changes, as in the case of "market value with special assumption about completion of works".
In most cases, the evaluation is determined by the type of value recognized by the International valuation standards, subject to the assumptions and special assumptions. Not encouraged the use of a value not recognized by the international standards, if for a specific job evaluation none of the International standards of value estimates is not appropriate, should be given a clear definition of the kind value and indicated in the report, why none of the recognized international standards value not applicable.
In these Standards there are the following types of cost:
- market rental rate
- value (investment value)
- the fair value
The most frequently identified type of value is market value that reflects the value in the transaction between independent parties without coercion, and does not take into account the special value or synergistic value. This value represents the price that, given different circumstances, likely to be set for the sale of property.
Market rental rate uses the same criteria for determining the amount of the periodic payment, not lump sum amounts.
Market value. The definitions established by the International Committee on valuation standards.
Market value is internationally recognised as a form of value. It represents the amount that would be contained in a hypothetical contract of sale of the property on the valuation date.
In determining market value are not considered encumbrances of the property of the collateral debt obligations and other encumbrances. The conceptual structure of MSO, which was quoted above implies that any element of special value which at the date of the evaluation pays a special purchaser, should be excluded when calculating market value. Special value includes synergistic value (also known as the cost of the merge).
Despite the fact that in the calculation of market value shall not be considered elements of special value in cases when the price you are willing to pay, the potential buyer, a regular participant of the market, reflects the additional cost due to expected changes in the characteristics of the property in the future, this additional cost is accounted for at market value. Examples of when an additional cost شقق للبيع في ابوظبي that buyers expect to receive or create in the future may influence market value include:
- the future of construction in the case when permission for such development is absent at the time of evaluation;
- the prospect of synergistic value by combining with other property or Association rights to the same property in the future.
If the property includes land that contains minerals or suitable for the disposal of waste may require assumptions that reflect, or the potential for such use, or-if the land is already used this way-any appropriate alternative ways of its use in the future .
Market rental rate. Definition approved by the International Committee on valuation standards.
Market rental rate -- is the estimated monetary amount for which the property or part of the premises that are part of it, can be leased on the valuation date as the result of a commercial transaction between interested and knowledgeable landlord and tenant, acting reasonably and without coercion, after appropriate marketing, and on reasonable terms. When determining market rents, you must also specify the appropriate conditions of the lease, that this lease rate reflects. The determination of market rents obtained from the definition of the market value by replacing the expression "an interested buyer" and "seller motivated" on "interested tenant" and "interested landlord" by using the additional assumption that the lease is "typical conditions". This definition is used as definition of market value, subject to the following comments:
"Interested landlord interested lessee" Change in name of the parties reflects the essence of this transaction. Motivated landlord has the same features that an interested seller and an interested tenant -- the same features that an interested buyer; the word "price" in the commentary to the definition of market value should be replaced by "rent", the word "sell" -- the expression "rent". The value of the market rents depends on the conditions of the assumed lease contract. Generally, the typical lease terms reflect the practices prevailing in the market relates to the property, although for certain purposes may require the imposition of special conditions. The value of the market rents impact the term of the lease, the frequency of revision of rental rates, as well as the parties responsible for the maintenance and fixed costs. Be aware that the laws of some countries may limit or influence the terms of the contract. Therefore, it should be clear to disclose principal lease terms that are used when determining market rents. If the market decided when joining parties to the leases to pay the incentive fee or rebate, and this affects the level of rents, this factor should be taken into account in the calculation. Must be specified the nature of the proposed remuneration and conditions. Market rent is typically used to denote a sum, which can be rented free object or property already rented property may be leased upon expiration of the current lease. Market rental rate is not recommended to use as the basis for calculating the amount of rent payable in the revision of rents, in this case you use the actual definitions and assumptions .The text size exceeds the maximum