Hi all,
Just wondering if owners of other types property assets such as commercital, industrial, and land also use ‘median prices’ as a measure as part of their strategy for investing?
I know it is used typically for residential housing by looking at cities and regions/suburbs, but I wanted to understand how investors think about median prices for other types of non-residential assets.
Thanks.
It is not a useful measure of productivity. These are commercial assets and valued on their capacity for output.
Capacity for production is determined by several factors (planning controls):
Zoning: A property with a IN1 zoning (general industrial) would be more valuable than one with and IN2 (light industrial) zoning as the types of uses are more diverse.
FSR: How big can you go?
Type of construction: Does the process require protection from the elements & how much ie lightweight construction or precast concrete or no walls just undercover etc
Functional obsolescence (are high bays or large column free space desirable for the type of use?)
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