Can you ask that in a different way? I am not sure what the question is.
I assume you are referring to the income approach and comp approach are giving wildly different answers. I see this many times in office condos, they are more valuable to an owner user than as an investment hold. For example the condos on the income approach could be trading on a 1-2 cap which is unreasonable from an investment perspective. Unfortunately the opportunity might not make sense to invest in due to the very low cap rate.
The Commercial market is allover the place you have to comp exactly similar properties in all aspects (land size, building size, gross and net income) in similar geographic.
Could the level of finish be different in the one that does not make sense? The end user can place different values on their space as they are not looking at just the value of the real estate but also the effect that the real estate has on their business performance.
Great question Some of the buyers could be owner users. If so they might not be as concerned about cap rates.
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