Valuing Commercial Real Estate in Puerto Rico

3 Replies

Good afternoon, I am about to cut some teeth in the commercial market (residential) in Puerto Rico. I am trying to find a good resource on how how they value their commercial real estate.

Originally posted by @Mario J Perez :

Hi @Aaron T.,

How big is the property? You can do a sales comparison approach or an income approach.

Hope this helps.

its a 7 unit. two buildings. 2x3bed, 3x2bed, 1x1bed, 1xstudio. 



 

@Aaron T. since its a 7 unit, I would use the income approach. Or maybe use a mix of the sales/income approaches. For the income, get the NOI and capitalize it, and for the sales, look for recent sales of similar properties in the area.