Websites for Evaluating Commercial Properties

5 Replies

Hi everyone, do any of the seasoned commercial investors out there have some recommendations regarding websites (or other tools for that matter) to evaluate commercial properties for things like cap rates, price/sq ft., etc. other than Loopnet, CoStar or the MLS? We've come across a couple properties that look interesting, but I don't have a lot of experience outside of residential. Any other advice would be appreciated as well. Thank you in advance!

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I am a broker...I can tell you, at least for our market (and I know other brokers outside of our market say the same thing), there is no reliable 3rd party data. We maintain our own data on sales for properties for which we are familiar. CAP rates are tough, because, there is so much fudging done on smaller deals. Even on institutionally held deals, the CAP rates aren't necessarily transferable (i.e. a large REIT might be able to drive down the cost of insurance considerably bc they are insuring multiple properties across multiple states and get lower costs on portfolios). CoStar is only as reliable as the data that is put in....a decent rule of thumb/guideline, but I would not bet my life on their data, particularly in thinly traded markets.

I am not trying to pump brokers, but @Jeff Greenberg is right.  Typically, brokers are the ones with the data.  They are the ones doing the deals and can paint a clearer picture b/c they have inside knowledge.  CoStar regurgitates what the brokers tell them.  They don't have intimate knowledge of the deals and frequently brokers withhold giving complete information to CoStar for various reasons.