Updated almost 10 years ago on . Most recent reply
Calculation help
I am looking at mixed use commercial property that is for sale. It has several homes, shop space and a small office building. The gross lease for all of the spaces comes out to $5500 per month and our local cap rate on this type of property is 8%. Is there a way to back calculate an offer based on these numbers? I know that the asking price is high, but am not sure how to come up with a reasonable offer.
Thanks ahead of time!