CAP Rate Calculations; The ROI Formula Lens of Lenders vs Investors After the 2007 market crash, CCIMs and other commercial real estate professionals were often asked, 'What is it worth?" With a paucity of sales from which to extract investment benchmarks, many of us were limited to guesswork,...
Commercial real estate can sell through on-market or off-market transactions. Both methods have their advantages and disadvantages, so the right choice depends on the property and the likely buyer. On-market transactions On-market transactions take the shotgun approach to selling. First, the broker performs a market analysis and...
In a LinkedIn group discussion, Avison Young broker and investment advisor Tony Kim shared illuminating insights into building the most accurate market lease analysis, whether for an appraisal or for client advisory. His main points follow. Asking rents versus completed leases For general appraisals in Los Angeles...
Estimating expenses is always topical around tax time, when deductions are on everyone's mind. More broadly, both appraisers and investors face recurring questions about what to include on the expense side. The goal is the best possible projections for multifamily property valuations and operations. Below are...