RISK ANALYSIS ASSOCIATED WITH VALUATION OF INDUSTRIAL PROPERTIES FOR BANKING PURPOSES

Abstract

The way an investment is being financed presents one of the risks of investing in industrial properties, so extra attention should be paid to address this matter. Therefore, it is necessary to assess the property in terms of the risks that affects not only the market value of the property, but also the overall collateral and financing of the property. Banks set the level of risk for each property individually and there are several situations that may arise while assessing the risk. This paper discusses the risks associated with valuation of industrial properties for banking purposes.