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