the factors that determine the location of a commercial property development and the economic factors that effect it

Despite the fact that conditions and situations differ , commercial property is always financed for close to 25 years by loans which amount to 60 or 70 percent of the property 's valuation Consequently , the lending financial institution charges customary fees in addition to expecting a security deposit . There are various sources of funding which include small business administration as well as local banks

Government 's Economic Policies

Government regulations and economic policies is the other economic factor that affects the development of commercial property . The government institutes a legal jurisdiction

which specifies the forms of ownership that a business can take while creating a body of commercial laws for each type of business . Some of the government policies which have an economic impact on the development of commercial property are tax regulations . These tax regulations and laws have different structures for different businesses . These policies affect the structuring and financing of the commercial property , sustainability of the business , funding of the business and its taxation ( Structuring Financing n .d

In conclusion , lot location of the commercial property is also important in the development of such kind of a property . Lot location is the specific locality where the property is to be located . For instance if the property is on busy highway , the price of the property will relatively be low because not many people will have the time to stop and make purchase or if it 's a residential area , there may be association of noise that will be coming from passing vehicles . This will automatically cause the price of the property to be low

References

BNET Editorial n .d , Acquiring Commercial Property , BNET : The go-to place for management

viewed 11 May 2010

Pollick M n .d , What is Commercial Property , WiseGeek , viewed 11 May 2010

p Struyk T 2010 , The...