There is a lot of discussing about valuing commercial property for purchasing, but what about the other side? How do you determine an asking price for an apartment complex or other commercial property? Thanks.
@Shane Blackshear The same...but in reverse. Most of the time you'll be looking at a cap-rate specific to the region along with the NOI of the property. Other people look at a certain GRM for the region and apply to the property. You can go down a couple of different roads. Or, you can do what I hate, you can construct a pro-forma based on what the property *could* rent for, arrive at a fictional NOI, and use that juiced NOI estimate (along with your cap-rate) to come up with a value that looks great on a listing. I'm only halfway joking about the last option. It seems fairly common (I wish it wasn't) for a pro-forma to be built to create an asking price instead of actual, historic, T12 data.