where to find commercial RE listing for greater Boston area?

Question

Is there some kinda of aggregator platform like MLS for commerical RE? thanks!!

Joel Owens · Answer

Dave you have not mentioned what kind of commercial property you are looking for.

Many types out there.

Example: Retail strip center with national tenants at a 6.5 cap for 5 million putting 1.5 million of your own cash down with median income at 90,000 or higher. Ring radius of 50,000 population plus in 3 miles and traffic count of 30,000 cars a day by the site.

OR

Another example: Multifamily building of 100 units at a 7 cap for 8 million and under putting 20% down. Stabilized property with tenant there at least 75% of tenants 3 years paying history on the rent rolls. Low crime area close to public transit and colleges. Property rental increases potential through renovation and updating of units.

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Commercial brokers are highly specialized so the more specific you get the better.

Joel Owens · Answer

For retail properties I have off market in Massachusetts in the 7's for cap rate around 3 million and up.

I help clients nationally.

I do not work on any properties under 1 million in price due to my time constraints.

Joel Owens · Answer

Dave the money to start affects your options.

If you are buying sub 2 million range cap rates tend to be more compressed because of a larger buyer pool wanting to move into commercial from residential and get more passive. The loans also are not as competitive under 2 million.

In the commercial space those properties are like a 50k house in residential.

When you move up to 3,4 million and up type properties you can start getting higher cap rates and better loans.

For example if you save 20 basis points on the loan and 50 basis points of upside on the purchase you now have 70 basis points of more yield on your down payment money. Down payment is typically 25% to 35% down on commercial if cap rate is 6.5% or higher with current interest rates. You dip into the 5's for cap then to make numbers work for loans really have to be about 45 to 50% down because DSCR is so low.

Mike Abramowitz · Answer

Hey @Dave Lin, I'd say a 5-6% cap in Somerville/Cambridge area is pretty within reason (you'll fall closer to the 5% most of the time.) But if you're looking at anything less than 5% I'd suggest looking at something closer to NNN Lease property. Check out http://www.netleaseadvisor.com/ tons of really great info on different companies.

Google loopnet NNN for properties that fall under this category.

NOTE: Not affiliated with anything on this site just an interesting site with a lot of info

Google loopnet NNN for properties that fall under this category.

NOTE: Not affiliated with anything on this site just an interesting site with a lot of info

John Menton · Answer

Aside from loopnet, I like to use some of the local broker websites like Verani, Conway, Donahue, century 21, Atlantic properties etc...they all have searches you can modify for commercial. Also try Craigslist. Good luck!

Dave Lin · Answer

thanks Mike! these are valuable info ~ thanks for sharing!

Dave Lin · Answer

wow thank you guys! I'm just abt to start investigating no clear direction in term of types of commercial properties. Just figure the residential spaces valuation is already so rich maybe CRE space is a better bet right now.

Just curious what's a decent cap rate in areas like Cambridge or Somerville? Is 5-6% a "in your dream" type of thing now? Thanks guys!

where to find commercial RE listing for greater Boston area?

where to find commercial RE listing for greater Boston area?

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