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Investing for the construction of commercial building for the purpose of leasing, sometimes  creates unforeseen circumstance that turns out into headache for investors Especially  when the return of investment fails to reach the target rate they were aiming,.. the Return  of investment turns out to be too long., thus the building owner would only rely on the  appreciation of the property for a longer period then sell it for significant gains to cover the  initial investment and interest, thus the building owner would depend on the local  economic situation where the  value of the property soon  would appreciates. But, what  if.,  a different scenario come  at play where the property is  under mortgage and the rate  of return could not cover the  loan interest rates, because of  the property’s occupancy rate  is too low to reach the ideal  cap-rate, thus the property is  in peril of being foreclosed in  the long run, In this scenario  one of the main factor the  building owner should pay  attention before buying the  land and building the structure is its location. It’s like a chess game where the players  manoeuvre their pieces in the center, to increase the mobility and control more squares.  The more squares they control the greater advantage they have, thus, “Controlling the  Center” is the main factor to get the advantage.  The location of the property along the main commercial strip of the City Center or within  the Central Business District played a significant rule of rental properties for potential gains  because of its visibility to pedestrian and vehicular traffic. And that applies Alfonso  Principles or the Bid-Rent Theory - The nearer the property to the central business district,  the lessee or land user become more willing  to pay the rent at the higher price. The  rental rate using “One Percent Rule’ for  leasing a property in a Central Business  District sometimes become too cheap for a  progressing city. Construction of  commercial buildings were limited or  commercial spaces were scarce. And  therefore new comprehensive urban  planning should be ratified and impose. To  convert or to reclassify to open more lands  for commercial development or maybe  increase height requirements to preserve  scarce productive and fertile agricultural  lands. Take an example of the property I  was engage a year ago by a public listed  company for a valuation of a numerous  rental properties around Negros Occidental. I found out that the value of commercial space  in a Poblacion in Municipality of Hinigaran with a Zonal Value of P2,500 per sqm is almost  twice that the rental rate in Bacolod City’s Central Business area with a zonal value of  P28,000 per sqm. Some of which rate values is almost equal to the price of a rental space  in a Mall, The features and the finishes are beyond comparable.  Sorry for I haven’t divulge numerical values of the survey collected from the field and  valuation computed. I am a civil engineer, plumbing engineer, environmental planner, real  estate broker and real estate consultant, our existence depends from the compensations  we received from our clients that requires our services and its not for free.  Please visit our services page at: https://bit.ly/2oZaYbR , for the list of our provided  services.  

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