10% rule for warehouse & industrial property value Long Island ?

[Andrew Carlson]

I've heard of the "10% rule" for evaluating commercial property, where the value of the property is 10 times the annual operating income (if I am understanding it correctly).

Obviously this is just a rule of thumb and there could be a lot of other factors.   

But with that said, on Long Island, NY, where there is endless suburban sprawl and almost no vacant land left, how does this rule hold up?  Is 10% still an appropriate number? Or is this local market a lot different?