Valuing using CAP rates & IE sheets

[Ibrahim Hughes]

Greetings everyone:

When analyzing commercial property and I receive the income and expense sheet from the realtor or owner, it rarely includes the vacancy rates and management fee. Should I include this (3-5% for vacancy and 5% for mgmt. fee) in their in order to calculate the true CAP rates and thus the value? I feel that their stated CAP rates and values are overstated if they are leaving out these two important 'expenses'.

[Jon Holdman]

"pro forma" => "pre tend"