Residential Real Estate Broker · East Orange, NJ · Member since 2014 · 297 posts · 26 votes
I am working on a commercial deal in East Orange, NJ. How do you determine what a commercial rental unit price? Comps are all over the place and I would like someone to give me some input.
Commercial Mortgage Underwriter / Broker · New York City, NY · Member since 2016 · 193 posts · 75 votes
10y
What do mean by comps are all over the place? Are you looking at the comps on a $ psf basis?
Focus on units that are similar in size. Smaller units will pay more psf than larger units. When was the last time a business occupied the vacant and what were they paying?
You also want to find comps in similar buildings and locations. You don't want to compare a retail store front on a mid-block building with no parking to a store in an anchored strip mall.
We closed two smaller multi-family deals in East Orange this year. None of them had retail so I'm not much help getting actual comps. I see you are a residential real estate agent. Do you have any local contacts who are commercial real estate agents? I'd imagine they can tell you pretty quickly what the comps are.