what is the average price per square foot of commercial real estate

In Buying Property - Asked by mike d. - Mar 25, 2010
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Answer(s)

Ragini V.
Broker/Agent
Plymouth, MN

Hi Mike, It depends on the location and what kind of commercial real estate are you looking to buy. Where are you looking to purchase your commercial real estate and what type you are trying to purchase?

Mar 25, 2010
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Lucian M.
Researcher
Ridgewood, NY

Where are you looking to Purchase this property

Mar 26, 2010
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Seema S.
Broker/Agent
Orange, CA

Absolutely Agree with Ragini. It depend on where you want to purchase? In addition, What type of asset you want to purchase (industrial, retail, office, multi-housing, etc)? Also the timing? Are you buying now, or in a few years?

Mar 26, 2010
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Chris R.
Broker/Agent
Denton, TX

You will have to narrow down your question. Commercial property values are akin to each different market and vary from property type to property type and depend on factors such as age, condition, construction, location, appearance, occupancy, terms of leases in effect (if being sold as an income producing property), compliance with local ordinances, zoning, etc. If you will be a bit more specific as to state and market and type of property - those familiar with your market would be in a position to be of assistance. Chris Rosprim, Scott Brown Commercial, Denton, TX

Mar 27, 2010
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Thomas M.
Broker/Agent
Upland, CA

Hello Mike, Question too broad to anser specificlly. Answers below address this. Although your question doesn't give us the intent of your question, I will address what I assume to be what is a fair market price for property in todays market. Although this question is too broad to give you specifics, there are a few general guidelines to ballpark it for you. In yesteryear market, the rage was CAP Rate. Above 6 was a good deal, with "Starbuck"type lessees upping the CAPs into the 8 CAP range. However, I taught to look at Price per Sq ft. first, supported by CAP rate & GRM. In Todays market, Price per sq ft should be under new replacement value for like properties, CAP Rate 8%, GRM under 8 (expenses not included). If a property looks good on paper with these guidelines, you then need to visit the property to look at the property and surrounding properties, looking for what potential major deferred maintainance.

Mar 27, 2010
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samuel h.
Dawmont, WV

general cost of commercial dwelling per square feet?

Jul 17, 2012
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