how to calculate the value of a post office
what’s the correct method to applying a cap rate to a post office?
[{"id": "g0hdifi", "text": "Find similar sold comps in the general area. Maybe a mailbox business.", "replies": [], "depth": 1}, {"id": "g0he6b4", "text": "Why?  \n\n\nIf you're thinking of buying one as Trump is trying to kill the Postal Service, be ready to get the building eminent-domained once a rational administration takes over. That's a lot of lost work.", "replies": [{"id": "g0hnzwn", "text": "They have to expropriate at fair market value though right? The federal govt is not likely to be buying real estate right now. Ain't gonna be part of the plan I don't think", "replies": [{"id": "g0hpbbk", "text": "\\&gt; Ain't gonna be\n\nTruly a staggering intellect.\n\nHave fun getting your building pulled at government valuation.", "replies": [{"id": "g0i7fru", "text": "Seriously though, I'm in Canada, post office here is basically AAA. In the US, gotta be AAA. \n\nIf they try to expropriate for less than you bought, sue them.", "replies": [{"id": "g0irwuf", "text": "Good luck", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g0hvbt5", "text": "Read the lease. Government leases are usually fully gross with lots of expenses and lots of outs. They can cancel them usually over very minor issues or just with 60-90 days notice.\n\nBe careful in your expense assumptions and be careful in your vacancy.", "replies": [{"id": "g231kxe", "text": "this one specific is NNN and has renewals signed by the area post master. I represent the LL, have had publicly traded REIT\u2019s inquire but not publicly available yet so trying to get ahead on pricing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g0qm895", "text": "Don't neglect the feasibility (if any) of backfill if they vacate. Corner of main and main in a growing community is different than single purpose use in a declining and small community. The financial advice here is decent (cap, pro forma, etc) but don't totally ignore the ability (or lack thereof) to find a replacement there.", "replies": [], "depth": 1}, {"id": "g231hfd", "text": "just helping a client try to put a value on long term leases they have in place for the building. Not too overly concerned since I\u2019ve got the vacant land behind it and the conjoined building under contract with an ice cream manufacturer.. just trying to do best by my client. $1100/mo NNN with 4 yr term left now with three renewals (renewal signed for 2024 currently, so lease effectively in place thru 2029 at $1250/mo NNN).", "replies": [], "depth": 1}]