How is the best way to determine the value of a leased property for an investor?

In particular, there is a five year lease for $4200 per month. Tenant pays
utilities but not taxes. Taxes are $ 1800 per month. Maintainence is $100 per
month. What would an investor pay for this building?
In Buying Property - Asked by Steven K. - Jun 5, 2010
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Answer(s)

Tia B.
Property/Asset Manager
Columbus, GA

Not knowing what the tenant is (being a high profile tenant makes a difference) and based on the numbers provided my assumption is as follows. Any investor is generally looking for a ROI in 10 years. So, 2300 a month net rev. translates to 27,600 annualy. Therefore over the course of 10 years an investor will net 276,000. You would have to factor in the desireability of location, city, tenant, traffic etc. But hopefully those numbers will give you a good place to start. Also, if you can get it, I would try to renew them for another 5, just to make the pot juicier. Hope this helps!

Jun 8, 2010
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rodolfo c.
Owner/Investor
Huntington Park, CA

you have any fee

Jun 8, 2010
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