Determining appropriate rent for uncommon properties
Hey folks, 

How would you go about determining the rent of an uncommon stand alone facility like a church or a daycare ? Every time I see one, it’s the only one of its kind that’s come for a transaction in the last X odd years. 

I’m the tenant, so I don’t have info about build costs or ownership costs. 

Is there a way ?
[{"id": "gjbcgj6", "text": "Determining rent is typically based on a couple perspectives. The most common, like you mentioned, is to find comps. If the comps are the Oaks Apartments for $800 with a pool, or the Pines Apartments for $760 with no pool, and your property is the Walnut Apartments with a pool, you're probably about $800. In your case, that may not be an option. This is what brokers and appraisers typically look for.\n\nAnother way to look at it, especially for properties that are common just not normally rented, is to back into a rent. Figure what the property is worth, and by backing through an income analysis, figure what income (rent) would produce that value. In desperate times, appraisers may take this approach.\n\nFor you, a third option may be the best. If you are trying to figure what rent you're willing to pay, what would you pay elsewhere? I mean, I realize other daycares and churches aren't often rented. But if you own a daycare and need space to rent, where else would you look? Strip center? So what would you pay there? Then again, go back to comparison. This perspective is more like the first example - finding alternative properties. The difference is that these properties are less physically similar but may give you some basis for your decision. Like if they're going to charge you $10/sf, and you think that's high, but your alternative right now would be $15/sf strip center space, then maybe $10/sf is acceptable.\n\nAny way you go at it, there will be less good data available but you should be able to find an answer.", "replies": [{"id": "gjbcocp", "text": "Thank You. This was great ! \n\nIs there a tool that could help me figure out what a building is worth ? Other than Loop.Net that is.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gjbk3fq", "text": "tenant affordability", "replies": [{"id": "gjbq4ez", "text": "i agree with this. what are you willing to pay? a church is a nonprofit, very diff from a for profit daycare. ultimately you need to run your numbers - assuming for profit - and see what maximum rent makes sense for you and then try to get as low as possible. \n\nretail property owners don't typically charge diff rents for diff uses (unless credit worthiness/anchoring come into play). It's typically that diff uses compete to see who can pay the most rent for each location. \n\non the landlord side i've utilized very creative methods to guesstimate what tenants for very strange properties would be willing to pay by guessing at their own revenues and costs.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gjc03g5", "text": "Daycares and churches rent space all the time in my market. Call an appraiser or a broker to get comps.", "replies": [], "depth": 1}]