The most effective way to run a CMA on commercial property is to find properties in the area with comparable tenants, and thus comparable income. Say the building that you are running the CMA for is a 5,000 SF two story mxed-use building. The first floor generates $48,000/year and the second floor $20,000/year for a total of $68,000/year. Subtract the building's expenses to determine NOI. Now you can set a price based on an appropriate CAP rate and start breaking that price down into a cost per square foot. Search buildings in the area with comparable CAP, NOI, and price per SF.
Dec 20, 2016