What is "area common multiplier"?

In the formula Gross Anual Rent x Area Common Multiplier = MArket Value, how do I find the ACM?
In Selling Property - Asked by Jim C. - Aug 27, 2009
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Mark V.
Boulder, CO

This sounds like a variation of the Gross Rent Multiplier (GRM). GRM uses 'scheduled' rents as opposed to gross rents, and your value can be determined by the multiplier that similar 'sold' properties in that particular market have been selling at.
The problem with these formulas is that they get altered to satisfy the author of some cash flow analysis. If you want to leard the industry standards, you should attend the 2 day CCIM Intro course. You will learn far more than those 'get rich' books teach.

Aug 29, 2009
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Gregory G.
San Francisco, CA

Sounds the same as the GRM with Mark mentioned. To find it divide the sales price or market value / Gross Anual Rent.

Sep 1, 2009
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