Commerce means the whole system of an economy that constitutes an environment for business. Commercial Property are the spaces used for businesses. It can be a wide variety of property types, from apartment buildings to sky scapers, strip malls, to shopping malls. Anywhere the commerce is done, including government, is commercial property.
There is an article that says Commercial Real Estate is the bright spot in Seattle. We have a lot of commerce here. We are the gateway to Asia, have many high tech firms, top retailers, and manufacturing. There is a lot to like in Seattle.
South Lake Union is being developed as reasearch facilities, and Amazon has moved in there. That is a lot of space for expansion next to a down town core that has been a low priority for development because of heighth restrictions that were just lifted a few years ago. A lot of the jigsaw puzzle that makes up a vibrant commercial market place is still very much up in the air. We have a lot of room to grow.
Growth potential is one part of a value. It implies scarcity. Scarcity is one of the things that increases rents. Rental income is one of the key factors in the value of commercial property. The higher the rent the higher the value the property has, in theory. There is also costs for getting that rental income. Some properties are in disrepair, or obsolete. Some properties have very high expenses, like taxes, or utilities.
Some commercial properties, like the Smith Tower, have a historic, or prestige value that is much harder to calculate.
We will explore more about the value of all properties here on this site. Many values are inner related. Job centers, transportation, and amentities play a big role in the values of residential housing units.
