Is the broker screwing with me, or just not smart?

[Troy Fisher]

I'm evaluating this commercial property and asked the broker to send me the offering memorandum.  But it doesn't make any sense, so if you guys can give some advice if they might just be making mistakes, or screwing with me:

The GSI (Proforma) shows this:

A --- 9,400 sqft --- $3,000

B --- 14,300 --- $2,000

C --- 25,600 --- $3,500

C --- 3,127 --- $1,750

D --- 2,400 --- $2,036 (A quick google search has the Tenant as having moved to a new location)

E --- 2,000 --- $1,200

F --- 2,600 --- $1,500

G --- 7,000 --- $1,300

Vacant -- 11,000 -- $0

Monthly $16,286, Annual $195,432  

According to the 2014 Proforma there's ~75,000 rented square feet. @ .2451/sqft!  With the biggest tenant at 13.67c!

But then they give another list of Rents for a previous year: 2007

A --- 9,308 sqft --- $5,000 <--- Sqft is rounded in 2014 PF

B --- 14,300      --- $8,000      <--- They got a huge deal in lease reductions!

C --- 2,823         --- $1,550  <--- I can't imagine they increased their footprint by 10x and only got a $1,500 rent increase!

D --- 2,567           --- $2,00

E --- 2,600           --- $1,850

F --- 2,000           --- $1,200

G --- 2,575           --- $1,550

     H --- 7,000          --- $3,500

I  --- 4,505            --- $2,251 (Tenant no longer on 2014 listing)

Vacant -- 17,997 -- $0

So theres an additional 12,000 sqft in 2014!  No new development has been built out.  Tax Records confirm the 2007 square-footage of ~65k.  

So I guess with all that, are brokers really that careless with listings and property offers that they send conflicting rentable square footage numbers to someone looking to buy. 

I know there is opportunity here, the going rental rate in this area is .53c / sqft and it is on the outskirts of current development.  

[Mark Creason]

Troy,

I work as a lender.  It amazes me how often a commercial real estate broker screws up an operating memorandum.  I typically see something like this:  GSA property with a 15 year firm term lease.  When you read through the OM, you eventually find out that the GSA has an out at 10 years, or that the original lease term was 15 years, but you only have 4 years left.  As a lender, I feel as if some of these agents waste my time.  Occasionally, you find a good agent.  Joel Owens, who is on BP, does a good job of representing his buyers and presenting an accurate picture to the lender.

Mark