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Commercial Special Purpose Sector in Texas
Commercial special purpose properties in Amarillo and other metros in Texas are hidden gold mines. This is a broad category that consists of properties that, generally speaking, have a unique design or layout, use specific construction materials, and other features that limit the property’s utility for anything other than the original purpose that it was built for. Although there are exceptions and variable municipal classifications, churches, casinos, cemeteries, self storage, car washes, fire stations, wineries, co-ops, convalescent homes, arenas, stadiums, tracks, and theaters are usually zoned under singlular purpose.
The Utility of Special Purpose Properties
If the designed use and capacity remains similar to conditions at the time the property was built, the functional utility and asset value remains high. The suitability of use is dependent upon advances in technology. There is not a high demand, for example for a passenger railway station in West Texas. These exclusive use facilities became obsolete well before their life expectancies.
Special use properties, many times, are not easily adaptable to another utility. It is hard to imagine a traditional church, for example, being repurposed into a car wash or a fire station. However, there are many exceptions to the rule. Architects transform special purpose space into dramatic and remarkable office and retail spaces.
Evaluating Special Purpose Property
It is a good idea to do your homework before selling or purchasing special purpose properties. Consult with an architect to examine the possibilities of repurposing an obsolete building into another functional space. Research the market fundamentals of the industry for which the special purpose buildings was designed to serve. Review appraisal data pertaining to comparable properties in the same classification.
Be willing to step back and take a unique approach. There may be a hidden utility in the property asset that other investors who’ve got themselves hip-deep in paperwork might have overlooked. Some special purpose properties are hidden gold mines of investment opportunities.
Mays Provides the Background Comps
Mays provides vital information to help you make an informed decision regarding your commercial real estate investment. We give you useful data about the construction of the property, such as the year the property was built, if there have been any updates to construction, as well as unit sizes. We provide ratios of rental and vacancy rates to ensure the location is a proper investment for potential buyers. In addition, Mays locates information about licensing and operating expenses of the property and looks out for possible competition in the surrounding area. Along with this, we provide a variety of reports:
- Market Reports: Detailed research on market shifts, changes in technology, and the economy near the property.
- Submarket Reports: Data on specific submarkets or neighborhoods within a specific metro market.
- Metro Reports: Historical trends that are a foundation for any precise market analysis.
- Rent Comps: Rent comps help investors evaluate property performance as compared to its competitors.
- Sales Comps: See properties similar to the one you want and find out what they have sold for before making financial decisions.
- New Construction Comps: Stay informed about upcoming, completed, or current projects that are under construction in the area they you are looking to purchase property.
For more information about the resources we offer commercial real estate property investors, see Mays Market Reports and Mays Property Reports. Or if you need specific information or have a question, visit our Question and Answers or Contact us.
US Legal, I. (2018). Special-Purpose Property Law and Legal Definition | USLegal, Inc.