Real Estate Technical Interview Questions

If you had two properties side by side that were identical in every way ( interior and exterior) why might one property be valued differently than the other?

Was curious as to what the best answer is to this.

 

Tenant credit quality including lease term, lease type, etc might be the biggest factors since the properties are identical in every way. Air rights might be an option but I am a little skeptical on that due to similarities of interior and exterior. Air rights is almost like a "value add" component.

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A snarky answer is that it can't be identical in every way - by definition, you're going to have to be closer/farther from certain spots/highways/hubs, which will impact views, logistics, freeway/road visibility, etc. Not sure the context of this question, but if this is for an interview (which I'm guessing it is given your recent posting history), then this could be a 'think outside the box' answer.

"Who am I? I'm the guy that does his job. You must be the other guy."
 

If the buildings are identical in every way, this is the only valid answer I can think of. You could say easements, environmental, upkeep obligations, or say the "buildings" may be equal but not property (e.g. parking, developable land, mineral rights, etc...) those might be cherries on top but the tenant part of the answer is the real meat of the question.

 

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