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This bottleneck has led to significant housing shortages, and left tenants and renters facing ludicrously high housing costs. Consider, for instance, the following types of regulation, all of which increase the cost to build: Building height restrictions, designed by localproperty owners to lock in the status quo.
Below we’ve outlined the most common commercial property appraisal methods. Cost approach : Essentially, this technique equates the property value to the cost of constructing a replica. The cost approach also considers depreciation, thus, assuming a fair market value for the commercial property.
Purpose: While residential real estate is designed primarily for housing, CRE is about tenant businesses or organizations that pay rent (or other fees) to operate in the space. Steady Cash Flow : Long-term leases and multiple tenants can provide predictable income streams. Here are some compelling reasons why CRE stands out.
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