| Description |
Because of the unique nature of commercial real estate brokerage information services, these services have a significant impact in the valuation of commercial real estate. Commercial real estate is very intricate and often difficult to fully understand. Different parties involved in commercial real estate value it in different ways. Developers value commercial real estate based on the present value of future cash flows. Users interested in buying or selling commercial real estate value property based on its market value. Each of these parties rely on commercial real -estate information to determine the value of a property. Some of these parties use information they obtain themselves, and some use information provided by appraisers, commercial real estate brokers, or other consultants. No matter where consumers of commercial real estate obtain their valuation data, the information collected and distributed by commercial real estate brokerages has a significant role in valuation. This paper will definitively explain the nature of the gathering and distribution of data by commercial real estate brokerage information services and how these services explain the nature of the gathering and distribution of data by commercial real estate brokerage information services and how these services effect the value attached to commercial property by all of its users. Beginning with an examination of commercial real estate markets and the role of brokerages in them, the information needs of commercial real estate brokers will be defined in order to fully understand the breadth of commercial real estate information services. Commercial real estate information services will be examined in and of them selves to demonstrate how these activities impact the valuation of real estate, even in cases in which the brokerage providing these services is not directly involved in the valuation. The unique ways in which different parties use real estate will be illastrated in order to explain how each of them assess the real estate they use. A detailed example of a cash flow analysis for developers of commercial real estate will be provided to show how the elements of a commercial real estate brokerage's information service effects this analysis. A model of a market value analysis will be constructed to show the impact brokerage information has on buyers and sellers of commercial real estate. |
