Whats the best way to come up with fair market value of a lease offer in a given area?

In Leasing Property - Asked by Stephen T. - Jan 17, 2012
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

If this is a commercial transaction, bring in a commercial real estate agent. If this involves a residential lease, bring in a residential agent. The right tool for the job will save you time, money and frustration.

Jan 17, 2012
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homanira a.
Owner/Investor
Irvine, CA

do you have a store for businssie to rent

Jan 18, 2012
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Tyler R.
Broker/Agent
Denver, CO

The first step is to look at the lease comparables for similar units in the area. I say similar because rarely will two units boast identicle characteristics that are not within the same center. Traffic counts, signage visibility, parking, ameneties, square footage, tenant improvements, lease term, etc. will all play a factor in the pricing of the property. If you are using a broker, most will have the contacts and wherewithall to determine recent leases that have been executed in the area, which should give you a reasonable range to which the property should be priced. The definition of fair market value is a bit of a grey area, as it truly depends on the motivations of the property owner and potential tenant. Good Luck to you.

Jan 18, 2012
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