Commercial/Residential Appraisal. comps or cap rate?

Question

I own a building that 8,600 sq ft it has two commercial storefronts, a two bay garage area and 6 residential apartments.  Comps for the building are... seemingly impossible to find as the only buildings like it are sold without occupants whereas this building is 80% full and should be 100% full by the end of the year.

Since comps would be difficult I believe an appraiser would appraise the building based on income.  Is there a standard cap rate in multi-use buildings would fall under for an appraiser?

Am I wrong in making the assumption that an appraiser would not use comps based on occupancy?

Account Closed · Answer

if the only difference is that the comps were vacant they could add the cost of lease up to 80% to the comp value to determine your value.

Account Closed · Answer

So you have retail, auto/industrial, and residential all in an 8,600 SF building? Wow, that is unique. My inclination would be similar to yours - the most reliable conclusion for value would probably be supported by the income approach, but an appraiser would not know for sure until they looked at the detail. Maybe secondary support would come from the cost approach (if you had good data for that), especially if you do not have any sale comps.

Different income streams are valued by different cap rates (as I can tell you probably know because of you comments). In any case, this is a  complex property and if you decide to have it appraised, be willing to pay a good fee to get the right appraiser involved.

Cheers,

Cam