Tag Archives: Montclair

Inland Empire Commercial Real Estate Market Snapshot 12-2-14

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INLAND EMPIRE COMMERCIAL REAL ESTATE MARKET SNAPSHOT 12/2/2014

(Industrial)

PRINT THE REPORT HERE ==> CBC – MARKET STATS 12.2.14

Average Rent Rate Per Square Foot – $.43 psf 

Vacancy Rate – 5.1%

Asking Price Per Square Foot – $87 psf

Average Sold Price Per Square Foot – $72 psf 

Average Cap Rate – 6.7% 

Market_Stats_Report_12-2-14

 

 

 

PRINT SALE & LEASE ACTIVITY REPORT HERE ==> Sale and Leasing Activity Report 12-2-14

 

SAN BERNARDINO County, Adelanto, Apple Valley, Barstow, Bloomington, Chino, Chino Hills, Claremont, Colton, Fontana, Grand Terrace, Hesperia, Highland, Loma Linda, Mentone, Montclair, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland, Victorville, Yucaipa, RIVERSIDE County, Banning, Beaumont, Calimesa, Canyon Lake, Coachella, Corona, Desert Hot Springs, Hemet, Indian Wells, Indio, Lake Elsinore, La Quinta, Moreno Valley, Murrieta, Norco, Palm Desert, Palm Springs, Perris, Rancho Mirage, Riverside, San Jacinto, Temecula, Wildomar,

How to estimate the value commercial property

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How to estimate the value commercial property?

money falling  Income properties can be evaluated by any real estate professional with simple valuation methods. One particular method of valuation is more accurate than another, depending on the type and size of    the investment property you are analyzing. No matter which method you use, you must conduct a thorough rental survey of similar properties so you can see if the property you are evaluating has rental    rates at market or under market. It is very important to keep many factors in mind such as location, condition, amenities, vacancy rates, and the investment marketplace which can affect the subject  property’s value. Otherwise, you could overvalue or even undervalue/underselling a property.

A very simple, but least accurate valuation method is the GROSS RENT MULTIPLIER method, which is mostly used on multi-family properties. You look at other recent local sales, take their selling  price, divide it by the stated gross rents to arrive at a “times gross” factor, which is then multiplied by the subject property’s gross rents to determine the value.
ie. Say your 20-unit property’s scheduled rents are $600/mo (600x20units= $12,000x12mo/yr= $144,000 gross annual rent). Local apartments are selling for 5 times the gross annual rent (the “times  gross” factor), so you value this building at $720,000 ($144,000×5). Keep in mind the other factors that can affect the value in order to see if an adjustment is needed.
A more accurate form of valuation is by using the CAPITALIZATION OF NET INCOME method. To find the property’s value, you divide the property’s income (NOI – ALL income minus ALL expenses,  except for any debt and taxes) by the desired rate of return (Cap Rate). You should get an idea of other property’s cap rate by dividing their NOI by their sales price. You still should use a current rental  survey to see if the property could achieve a higher NOI. But value the property somewhere below the max value in case of a loss of scheduled rents.
There are more accurate methods such as the IRR method mostly used by institutional investors, but requires more info and you will have to do more work.

Commercial properties are almost always valued best from the income approach to value. Being a commercial appraiser and commercial broker, there are many ways to value a property based on the  purpose. Such as for bank financing, estate purposed, insurance loss, etc. If you just want to get a general idea of where your property may be, I would suggest using the IRV Formula. I= Income, R =  Rate and V = value. If you know two out of three you can solve for the third varialbe. There are three formulas: I = R * V; R = I / V and V = I / R. You can memorize the formulas or use the visual approach like I do.

Draw a circle and then a horizontal line from left to right that make two half’s; one at the top and one at the bottom of the circle. Next, on the bottom half of the circle draw a vertical line from top to bottom making the bottom half of the circle each 1/4 of the whole circle. Now put the “I” on the top half of the circle above the horizontal line; put the “R” in the bottom left (1/4 of the circle) and then the “V” in the bottom right (1/4 of the circle).
The horizontal line acts like a division symbol and the vertical line acts like a multiplication symbol. Now just look at the formulas and you can see that if you are solving for the value of a property, you take the income and divide by the rate.
Note that the income is the NOI not the gross and Rate is the going cap rate in your market for whatever property type you are trying to value. You will need to figure out the cap rate.
NOI can be derived in many ways and cap rates are open to interpretation, so this is just a ball park method unless you know that the NOI and cap rate are well supported for your property.

For a Free, comprehensive analysis of Valuation for your Commercial property…

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Building Vacancies

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Why does my building have vacancies?

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Is your building suffering from persistent vacancies?  A thorough market analysis can help to find out why your tenants are leaving, if your lease rates are competitive and what your competitors are offering.  Understanding these main factors will be a great insight into how to attract and retain quality tenants:

 

  • Demographics. Which target markets can your building serve?  Studying the people that live in the surrounding area will give a clear picture of the types of businesses that would likely succeed in your particular area.

 

  • Competition. What types of buildings are your competitors located in?  Knowing the classes of buildings within your area will give you an idea of your competitive edge.

 

  • Traffic counts. High traffic counts attract a specific type of tenant while lower traffic counts will attract another.

 

  • Compare rates. What lease rates are your neighbors charging?  Are they offering Triple Net or Full Gross?  Understanding exactly what your competition is offering can help your negotiation strategies when dealing with lessees.

Get your Free Report… 

5 Tips to Lowering Vacanies - CDC-page-001

5 Tips to Lowering Vacancies in your Property

  • Knowing your market
  • Understanding tenant needs
  • Winning first impressions
  • Attracting quality tenants
  • Finding a commercial real estate agent

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Inland Empire Commercial Real Estate

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Inland Empire Commercial Real Estate – Investment Real Estate

Inland Empire Commercial Real Estate, Investment Real Estate, Warehouse Space, Industrial Properties, Vacant Land, throughout Riverside and San Bernardino Counties.

You can Search Properties, Topics on Investment Real Estate, Find and Sell Warehouse Space, For Sale, For Lease, Industrial Properties including Contractor Yards and Truck Yards, Vacant Land, 1031 Exchange throughout Riverside and San Bernardino Counties, a.k.a. The Inland Empire.

My Core Values Include: 

  • Value – I review every lease deal from an owner’s perspective, enabling our clients to maximize revenue and increase value.
  • Accountability – I monitor key performance metrics and provide you with reporting on a regular basis.
  • Data Driven – I provide timely advice on valuations, transactions, deal structuring and portfolio strategy.
  • Visibility – Reaching the right audience, with the right message, is mission critical to the projects success.
  • Results – The bottom line is that results are what matters. I will deliver the results you desire, PERIOD!

For a comprehensive analysis of your situation and to discuss your next move, contact The Warehouse Specialist today or fill out the form…

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My Areas of Focus include:

  • Highest and Best-Use
  • Acquisition
  • Sale and Disposition of the properties
  • Re-position Strategy
  • Energy Efficiency
  • Marketing and Lease-up Strategies
  • Seller / Landlord Representation
  • Tenant / Buyer Representation
  • Lease Structure – NNN, Gross, Modified Gross
  • Property Tax Appeal
  • Logistics
  • Environmental

 

Robert Mendieta 3-compressed In 2013, Robert was the number two Overall Top Producer commercial earner and is a member of the American Industrial Realtor (A.I.R).

Recent sales include

34,000 SF industrial building for $1.7 million in Fontana, CA,

46,840 industrial building for $3.4 million in Riverside, CA

18,000 SF building for $1.9 million in Riverside, CA.

Additionally, Robert recently sold a 64,000 square feet vacant land parcel in Banning, CA for $700,000.

Robert is a leasing specialist, completing over 200,000 SF in industrial lease transactions in 2013.

Some of his notable clients include: Christie Digital Systems, Inc., Automatiq Inc., Grapeland Transport Services, Diverse Steel Inc., Field Sports, Inc., and Fleetserv, Inc.
Prior to joining the commercial real estate industry, Robert worked with investors in the purchase, renovation and disposition of residential properties.

Robert served in the US Army as a Forward Observer to adjust Field Artillery and was stationed in Fulda, Germany within the 11th Armored Calvary
Regiment. In 1990, he won the prestigious “Hero of Hoenfelds”, a two week annual training of simulated warfare. He was the only Forward Observer to
ever win the award. After seeing the Berlin Wall come down, his unit was sent to Saudi Arabia and Kuwait to help liberate Kuwait and participate in Desert
Storm. He served four years of active duty and two years in the National Guard.

Robert attended the Embry Riddle Aeronautical University, with studies in Engineering and Business Management. He resides in the Inland Empire where
he enjoys martial arts, fishing and camping.

Desert Storm Vet 2   AIRLogo   costar_logo