How do I value my Property?
I chose this video for you, done by Ron in Long Island New York, because it quickly articulates 5 tips for successfully selling your commercial property. These tips are as applicable here in Winnipeg as they are anywhere.
Income producing properties in Winnipeg primarily trade based on 2 underlying factors Cap Rates and $/sqft.
- Cap Rates – Calculated as follows: NOI / Purchase Price
- $/sqft – Determined by Sale Price / Gross building area
When selling, its important to keep in mind the perspectives of the different types of buyers. Here are a few things each buyer type will be thinking of when buying a commercial property.
What’s important to buyers?
Investors
- Lease Rates
- Cap Rates
- Interest Rates
- Lease Terms & conditions
- Equipment Condition – HVAC, Boilers, Air Handling Equipment
- Condition & extent of current improvements vs current building code
- Building Condition –roof, foundation, windows, parking lot, power
- Asset Type – Retail, Office, Industrial, Hotel/Motel, Land, Etc
- Zoning
Potential Occupants
- Zoning
- Renewal rights of existing tenants
- Condition & extent of current Improvements vs current building code
- Equipment Condition – HVAC, Boilers, Air Handling Equipment
- Asset Type
- Building Condition – Roof, foundation, windows, parking lot, power