cap rates for commercial buildings in Corona Del Mar, Ca area

In Selling Property - Asked by richard O. - Dec 18, 2008
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Answer(s)

Thomas N.
Developer
Orange, CA

CDM is unique and should garner close to the lowest cap rate of any commercial property in CA. However, in todays enviorment unless you are selling to an owner user I cannot see a cap rate less than 5.5% based on actual numbers. There is also a increasing number of vacant spaces.

Dec 21, 2008
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Tom N.
Broker/Agent
Irvine, CA

Depending on your particular property type the cap rates in the CDM can vary. You would also have to determine the target buyer (owner/user, investor, developer). Best to contact established commercial real estate company to do an analysis. Email me if you have any questions. Tom Nguyen tnguyen@naicapital.com

Jan 5, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

What type of commercial building? Who are the tenants? How long are leases? Is there any vacancy? What's the status of competition?
If you are talking a triple AAA rated credit tenant on a 50 year lease with annual escalations, then look to the bond rating of the tenant.
An empty restaurant ... no cap rate applies. If it's a quality restaurant like the Five Crowns, then I would look at the lease rate and term, compare to market. Probably nothing above a 7% in CDM.
If you are talking about a low quality, low rise, multi-tenant office with 50% vacancy and tenants facing vacancy then look to double digit cap rates.
There are a plethora of factors that go into estimating a cap rate, I'd recommend contacting a real estate professional and ask to see comparables in the local market. Conact me if you have further questions ... chris.schreiber@century21.com

Jan 16, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

Somewhere between 0% and 100%.
It all depends on the specifics of that property, tenant, etc. This way to open ended of a question to really be able to answer. That being said, we will be down there again next week, so it should be interesting to see how that submarket is doing!

Aug 3, 2009
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Tai L.
Broker/Agent
San Diego, CA

Cap rates are derived with NOI and price. It all depends.

Aug 23, 2009
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