how can i tell if my rental's price is too high

I am leasing a former bar on route 23 in Butler and I have not got much action. How can I find out if is priced too high?
In Leasing Property - Asked by Stephen H. - Nov 17, 2010
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Answer(s)

Ken B.
Owner/Investor
Milton, FL

Ask your local COMMERCIAL BUSINESS Realtor. A busy Realtor is your best bet for your type of business.
You might also go to www.ccim.com and do some searches for managers of your type of business in your area.

Nov 17, 2010
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Joel T.
Broker/Agent
Brooklyn, NY

Ken B is correct. The best way to find out is to ask a commercial leasing realtor. They usually have or can find comps.

Nov 17, 2010
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Marc B.
Broker/Agent
Paradise Valley, AZ

If you aren't getting any showings, that is the first indicator. If you haven't had any calls in 1 month, its too high. Just a rule of thumb. Is is easily "findable" on the internet and for drive by? Who are you marketing it to? Find out what has closed in the last 90 days and have it priced in the bottom half of those. That should move it fast. You will probably have to talk to a broker to find out the comps. Comps are the only objective information in real estate

Nov 18, 2010
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Jamiel C.
Owner/Investor
Richmond, VA

Your competitors. Look at local retail outlets, in addition to other bars as this is the industry in which your investment product is placed. If they are going for an average of, lets say, $15 per square foot, and you are charging your clients $19 or $20, you may want to make the adjustment. This does not apply of course, if your bar offers higher value than the afore mentioned competitors. You can ascertain whether or not that is the case using basic appraisal strategies, or having it professionally done. The website www.commercialpropertyappraisal.com is very resourceful here. The combination of similar rental rate averages, in addition to accessing your properties value should help you arrive at a reasonable price. Just be sure to emphasis the reason why your prices are higher, as these are selling anchors for negotiating.

Nov 19, 2010
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