Some Questions About Retail Center Property...

wgibbs profile photo

ok. its an 17500sf center, less than 1 year old. triple net leases. its a 17 unit center and 16 units are rented....



is there a formula for figuring value based on income?



also, as far as perm financing, what should i look for?

Comments(1)

  • gcwill21st January, 2008

    I am a commerical appraiser by day and a real estate investor by night. I would suggest you hire an appraiser to value the property. The income approach is a little more complex then just picking a cap rate. Whats the condition of the property? Whats the the build quality?, Whats the market it serves?Is it a institutional grade property and if not what grade? Do you have surveyed cap rates for your market area?

    But to answer the first part of your question you take the 16 contract rents and then you must find the market rent for the unrented unit . Good luck

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