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Author Topic: Commercial Real Estate - NEED HELP  (Read 566 times)

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AllHog90

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Commercial Real Estate - NEED HELP
« on: January 14, 2015, 04:11:49 pm »

I have a friend with property in a small town (1500-2000 people, but considerable highway traffic) in Central Mississippi that sits on the corner of the two major highways that run through the area. He had a commercial investor representing a national chain looking to write a check for the property - what is the best way to find information to help appraise the property. Yes, I've googled it with no success. Thanks
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aristotle

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Re: Commercial Real Estate - NEED HELP
« Reply #1 on: January 15, 2015, 07:50:26 am »

Is it improved or unimproved?

I'd call a commercial appraiser like CB Richard Ellis or somebody. Check the yellow pages/internet for them in bigger cities nearby. They'll send somebody out there. The fee for a commercial unimproved could be around $1500. The fee for improved commercial, would be maybe double that. If a national chain is going to write a check for a corner lot, you're buddy may have just hit the jackpot. Spending a few thousand to get a precise value of the subject property would be a small price to pay to be able to negotiate prudently.
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aristotle

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Re: Commercial Real Estate - NEED HELP
« Reply #2 on: January 15, 2015, 07:50:56 am »

And what does the county have it assessed at?
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AllHog90

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Re: Commercial Real Estate - NEED HELP
« Reply #3 on: January 15, 2015, 08:11:05 am »

It has an old dilapidated house on it that would need to be torn down regardless of what happens to the land. Not sure on assessment
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aristotle

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Re: Commercial Real Estate - NEED HELP
« Reply #4 on: January 15, 2015, 11:24:32 am »

It has an old dilapidated house on it that would need to be torn down regardless of what happens to the land. Not sure on assessment

So the improvement adds no value, basically leaving a vacant lot fronting highway. For a quick idea, you're friend could take comps based on highway frontage sales in the area (going back like 2 years or so). If it is under an acre, use a $/sq foot comparison. If several acres, he could use a $/acre comparison. If the only highway comps recently have improvements already in place, you could use them and back out 80% to leave the vacant lot value.



That is just a quick guide for establishing a negotiating point. I'd still get an official appraisal.
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