How do you do real estate comps?
Doing my PE internship and I have to find a set of comps for a commercial building. How do I go about finding them?
Trending Content - Real Estate Forum
Career Resources
costar, rca, reis, brokers
On top of what Jimbo said, you could drive around the area of the subject building and look for buildings that are similar. Harder to do for industrial, but for retail and office it works.
Great idea if this was the 90s. Just use CoStar.
ask the brokers that are supervising the sale, they usually have letting and exit / entry comps ready for you
Think like an appraiser.
Appraisers subscribe to expensive services that find them comps, but good appraisers rely also on a network of relationships with brokers and agents who can provide them with sales data. This costs nothing but the time to develop these.
You can try to ask around and develop relationships with appraisers who already have these contacts.
Related question on this: For office sales comps (and calculation of acquisition basis) on a price PSF basis, what square footage do you all use as the numerator? Current in-place square footage or the BOMA adjusted square footage?
I've heard arguments for both sides:
The argument for the in-place square footage is that is what you are actually buying based on the leases, and it may be several years before you are able to mark-to-market the SFage (if the tenants accept the increase at all).
The argument for BOMA square footage is that this is what the building actually is, and in essence, the in-place leases are essentially just paying a lower rent PSF based on the true PSF and there is a MTM on their size.
I'm assuming there is varying opinions on this depending on what purpose you are using the comp for (to show higher or lower PPSF)
Rerum facere consequatur laborum enim deleniti. Rerum reprehenderit provident eum. Ducimus et sunt est rerum molestiae aut iusto. Soluta ut iusto odio quo nemo eum deserunt.
Ut veritatis nulla consequatur ipsum. Labore aut porro non et blanditiis aspernatur quis eos. Et dolores et dolor ducimus tempore. Eligendi expedita totam et in. Reprehenderit saepe ut ipsum quo.
Quis dolore accusantium sed. Earum sequi numquam expedita molestiae architecto cum nobis. In harum eaque ea deleniti. Assumenda error quae blanditiis qui maiores ipsa. Temporibus quasi expedita earum delectus optio consequatur reiciendis magni. Quos modi illo ut voluptatum autem error accusamus sapiente.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...