Hi All,

I have the possibility of buying a mixed-use 4 unit (2bd/1br) with 2 commercial properties included. Brand New construction, in very popular up & coming town 30 mins outside of major city.

How can I go about evaluating the commercial space to find or figure out to get a good number to rent out to that space?

Is it based On the business I’m potentially bringing in or just based on the area/comps (similar to renting)?

I’m brand new to the the RE world and this opportunity came across my “desk.” I’m currently working on funding for the property, and will be going to evaluate the property soon.

Any information would be greatly appreciated!

Cody

@Cody Costa , commercial real estate (mixed-use, multi-family, office, whatever) is valued based on NOI and Cap Rate. You'll have to make some projections since it's brand new.

Income approach, and sold comp($/sf) are to be employed. Rental income, expenses, utility and vacancies. Must be in the similar neighborhood in the area.

Do you have a plan to get tenants? If you're brand new, don't take on commercial vacancy risk.