What is the average percent difference between the asking price and selling price for Industrial properties in

In Market Conditions - Asked by Dudley S. - Sep 25, 2012
Report Abuse
Answer this Question

Answer(s)

Chris F.
Broker/Agent
Salem, OR

That depends more upon buyer motivation and the market conditions surrounding the purchased property (is it reasonably priced). You also have considerations of time to close and all cash deals that will effect that price as well. I dont think you can give a hard and fast number, you might be able to get an average, but that average wont do much good if you ask me.

Sep 26, 2012
Report Abuse
Chris R.
Broker/Agent
Denton, TX

Not really possible or realistic to try and put an average on such transactions. Each property must stand on its own relative to price, terms, condition, location, etc. so not really possible to lump all together to come up with an average that would be meaningful and applicable to other deals. A good commercial REALTOR can assist you in reviewing available properties as well as sold properties in the area around the property of your interest and guide you through facts and data to arrive at what you feel would be a price you would be willing to offer relative to the market.

Sep 26, 2012
Report Abuse
Dalip S R.
Broker/Agent
Arlington, TX

Industrial properties are hard to compare, each one is unique. Selling price could depend on the sellers motivation to sell. It also depends on the current market demand for such industry. It will be very hard to determine average price difference.

Sep 26, 2012
Report Abuse
Michael L.
Broker/Agent
Altadena, CA

You won't get much knowledge from this average. Sellers typically insist on pricing the property too high, then have to lower the price to match the market at that time. Every property is different, comps for industrial properties are hard to come by. Location, access, power available, utilities, sewer requirements, office space, all vary.

Oct 10, 2012
Report Abuse
Robert H.
Broker/Agent
Metairie, LA

I authored a report on pricing which you can download at http://www.louisianacommercialrealty.com/news/2012/06/where-are-prices-trending-for-new-orleans-commercial-real-estate/. Prices seem to vary based on how bad the buyer wants it and how bad the seller needs the cash, which often depends on what is called "opportunity costs" which is what else they would do with the money. Each buyer and seller is unique in their motivations which makes it impossible to predict. Property listed by CCIM members are usually researched better and priced more closely to the market value so there is less variation. Some sellers will greatly inflate the price because they expect to discount it.
I authored another article at http://www.louisianacommercialrealty.com/news/2012/02/march-2011-trends-in-commercial-real-estate-in-new-orleans/ showing the list and sale price of commercial properties in new orleans which you can use as an example.

Oct 13, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question