Should Commercial Property Evaluations Be In Your Portfolio Toolbox?
The COVID lockdown and Work-From-Home phenomenon have both put stress on the commercial building and lending markets. There is talk of there being roughly 1 billion square feet of empty office space in the United States alone, and this has made both commercial property owners and lenders nervous. Some commercial property owners are even converting their properties to other uses such as apartments and condominiums to generate income and avoid foreclosure.
The potential for a large drop in commercial property values has lenders on edge, particularly small and mid-sized lenders with larger percentages of exposure than bigger regional and national lenders. Smaller lenders must weigh whether they want to modify these loans or foreclose. Foreclosure isn’t the best outcome as what is the point in carrying a commercial property that’s worth less than the original loan?
Getting a handle on the value of these properties is important to determine risk and make the right decision. Commercial appraisals are very expensive, usually thousands of dollars, and can take weeks or longer to complete. The cost of doing appraisals on all the commercial properties in a portfolio could be very cost prohibitive.
So, what is a commercial lender to do to determine current commercial property values quickly, efficiently, and for less cost?
Commercial Property Evaluations could be the answer. The turn-times and costs are drastically lower than a traditional commercial appraisal. These evaluations come in different types to fit diverse needs. Smaller properties may only need a basic exterior evaluation, while larger properties may require more in-depth analysis using an interior market approach or income and market approach evaluation.
Most of these commercial evaluations cost less than $1,000 and can be completed in nine to fourteen business days. They include photographs of the subject property, property condition reports, location audits, occupancy status, comparables, and more depending on the type of evaluation. Both interior and exterior evaluations are available.
New Vista Solutions is pleased to offer the commercial lending community a full line of Commercial Property Evaluations, Flood Determinations, and Tax Service products available in all fifty states to suit a wide range of needs.
To learn more, please call us at 866-721-9295 or email us at info@newvistasolutions.com. You can also learn more about these solutions at https://www.newvistasolutions.com/commercial-solutions.