Posted by Al Mantini on November 11, 2002 at 10:23:09:
Hi Ray,
First time on the commercial. I was a commercial broker for many years with Marcus & MIllichap in Los Angeles and Beverly Hills. Made good $$ but didn’t like the corporate structure. I am a RE Broker I invest in small deals houses etc. I would like to pursue smaller commercial buildings and MH Parks. When I was in the business there were several Directories…i.e.Apartments/Mobile Home Parks/Office builings etc. I remember the name Mellon as I think the Apartment Directories do you know where or how I can find these sources?
Re: Comps on commercial prop’s? - Posted by ChrisC
Posted by ChrisC on November 05, 2002 at 19:43:46:
Dear Pro’s -
I would like to figure out how 2 run comps on commercial properties, but I don’t have access to my local MLS system. Is there any way a layman can get access? Also, under the commercial property section of the two major newspapers, they don’t seem to be running a section on “Sold” property - in the Sat/Sun paper. Any ideas?
Re: Comps on commercial prop’s? - Posted by Terry Heilman
Posted by Terry Heilman on November 07, 2002 at 17:37:46:
Chris,
Check out www.ecomps.com its what most commercial appraisers use. The appraisal Institute also has a database. ecomps is somewhat expensive and the income information is typically not reliable. If you are not in Cook County the assessors are a good source.
Re: Comps on commercial prop’s? - Posted by ray@lcorn
Posted by ray@lcorn on November 06, 2002 at 07:07:22:
Chris,
MLS won’t do you much good even if you did get access. Most commercial properties never hit MLS because the system is set up for residential real estate. Besides that, depending on what type of property you’re looking at a comparable sale isn’t nearly as important in commercial properties as in residential.
Income properties are generally valued by reconciling three approaches to value; cost, income and comparable sales. Of those three approaches, the income approach usually carries the most weight. Comparable sales are not as accurate because of difference in markets from one income property top the next.
But it does help to know what comparable sales values are, and the best way to do that is to go straight to the source. That can mean either contacting owners, sellers or brokers of properties you know recently transferred, or picking out property in the same market and looking up the last sale transaction in the courthouse. The second method is what I have used for years. I like to go look it up for myself. Either way, you’ll then have to convert the sale price into a unit of measure such as per unit, per sq. ft., per acre, etc., or something similar to compare to your subject property.
We have a couple of appraisers that post here regularly and maybe they will chime in and give you some more guidance.