Updated almost 7 years ago on . Most recent reply
Calculating NOI of Triple Net Commercial Property
I am looking for some assistance in calculating the NOI fo a triple net leased commercial property. The details:
-Property is being leased as a bar/restaurant in Thornton, CO
- My LLC owns the property. I also operate the bar/restaurant. In effect, I own the location.
- Bar pays for taxes, maintenance, insurance and rent
- same tenant since 2001
Is the NOI just the monthly rent x 12, minus miscellaneous accounting expenses? What would be a good way to find the cap rate for similar properties in my area? What factors am I missing? Is the NOI of the bar/restaurant relevant to this valuation?
Thanks for any help, I’m new at this type of analysis. Please let me know what variables I am missing, or should be considered in general in these situations.
Sam