Knowing what makes a property value and being able to accurately estimate the value of a property is essential to a profitable real estate investment. In the past few years, a popular approach has been to find a structurally sound, yet cosmetically lacking property and give a coat of paint and a little landscaping. 

Take two commercial properties with the same features, built in the same year, in virtually the same area. The natural assumption would be to think they're both worth the same amount, however, there may be a significant difference in the two property values and it's based on one key factor. For more information about a commercial lease, you can visit

One of the reasons true commercial real estate, that is not counting large apartment complexes, is often preferred by investors over residential real estate is because of the differences in the leases. Residential leases tend to be fairly standardized, and also favor the resident over the landlord depending in part on local laws. 

To a less experienced investor, it may be difficult to fully appreciate the importance of a good lease agreement, the importance lies in the fact that an investment property is bought primarily for its income. 

Therefore the higher the property's income the higher its value, that being said the stability of the income is also a major factor, as is the degree of direct management the property will require. 

When considering the purchase of a new property or renting out an existing property there are a few key items to keep in mind in order to get the most from the least, remember the lease that pays the most may not actually be the most profitable.