WILL NEXT DOOR OIL CHANGE BUSINESS AFFECT THE PROPERTY VALUE?

I am interested in acquiring a retail commercial property. I just learned an auto care shop (oil change) is moving into the next door building. Is there an enviromental (in reality and/or perception)due to its oil change business? Will it affect my future property value If I do purchase the commercial building next to the oil change business.
In Buying Property - Asked by ling C. - Aug 6, 2009
Report Abuse
Answer this Question

Answer(s)

James I.
Broker/Agent
Birmingham, MI

Ling C.,
Much of the answer to your question will be determined by your local and state laws. The perception of the type of business is one of your customers. If you feel your business will be effected due to the perception of the type of business. Owners in positions like yours will have what we call in Michigan Phase I tests done when they purchase. These and "base lines" will indicate what the status was of the property when purchased. If there is an issue as a result of another property it is then easier to address.

Aug 7, 2009
Report Abuse
Commercial A.
Appraiser
Los Angeles, CA

Hard to say! They may be a draw to your business as most folks would rather walk around, rather than sit on their tucas for a half-hour of so. The enviornmental issue may result in an inability to get financing, but ultimately, the effects will depend on how the regulatios monitor the site. In Los Angeles some are very clean, others you can smell them a block away.
good Luck

Aug 7, 2009
Report Abuse
Gregory G.
Broker/Agent
San Francisco, CA

When you go to sell you'll need a phase 1.

Aug 14, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question