All Forum Posts by: Patrick Murray

I manage about 200,000 sf of retail and office space in NC and SC. Over the past several months especially, I have noticed a slow down in tenant prospects and instability in long term tenant stability. Several tenants are considering moving to less expensive properties as their leases are up for renewal. Although this will happen irregardles of the national economy, it is becoming more prevelant in our properties. The market I primarily work in (Fayetteville, NC) hasn't quite felt the slowdown because of the growth of the military base.

I use Loopnet, Costar, Catylist, MLS, etc to advertise properties for lease, but have not had very many leases signed from these. I've found that on-site signage and relationships with prospective tenants/retailers is the best way to get the spaces leased. Regarding retail, become a member of the ICSC and go to the trade shows so you can meet the retail company reps that select their sites. This way you know how to talk to (and eventually they will know you) and you know what type of property they are looking for.

I would think it would go into your basis.

Since your post was quite some time ago, I would assume you have already found the answer to your question. Would you mind sharing what you did end up doing?

Thanks.

I think it is best to keep the information as short as possible, but still convey the message you want. When I pick up a card that has a full paragraph, bullet points, etc on the back, I never read it. I don't have the time nor do most other people. Keep it simple.

Looks good.

What is MV?

I agree that it is best to have an agent help with the comps. They should have better access to a database and won't charge you as much to do a CMA.

If you need comps for a commercial property, I've found that CoStar has the best database for commercial properties.

I agree with the previous two posts. It will save you a lot of time by having the owner give you a price where you can start your negotiations. Still do your due diligence to research the market value for that type of property. Look at properties that are both occupied by a tenatn and vacant. As a user of the property, it would make more sense to for the purchase price to be based off of the property if vacant. If you used the income approach, you are basically valueing the income stream it creates. However, use whichever means of valuation that is in your benefit.

You are absolutely correct about an owner using the schedule E to fudge the numbers. This schedule will not give an accurate NOI for several reasons and should be used as a good to build a proper income statement that can be used to evaluate the property. It is in the property owner's best interest to show a low net income for tax purposes, but if selling the property it will make the income seem lower than actuallity. I've had this happen before with a deal I was analyzing when the owner gave me their tax returns instead of an income statement.

Hey Steve, Lake Norman is a nice area. Are you a broker or investor? I'm a commercial broker in Fayetteville, not too far away from the Charlotte area. Let me know if there is anything I can do for you in this area.

I do not specialize in business brokerage, however, I have sold one business which was actually just an asset sale. What method have some of you used in determining the value of a business? In business brokerage, is there a "preferred method?"