How to best comp Commercial/Mixed-Use Properties??
I know this might be a broad question but how does anybody on here comp commercial properties? I worked in M&amp;A so I thought about Multiples (EV/R) but I am sure there is other ways out there. The problem with sold comps is that most commercial/mixed use buildings are a little more unique than SFHs. Curious to hear everyone's thoughts.
[{"id": "ief5yiz", "text": "We use cap rates and per door pricing to compare assets of similar type, class, vintage, and market.", "replies": [{"id": "iefcfm3", "text": "So sales comps?", "replies": [{"id": "iefy5m7", "text": "A sales comp gives us the per door price and cap rate. We then use those metrics to compare properties. \n\nBut yes.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iefp5it", "text": "I\u2019ve developed mixed use properties and also have some M&amp;A experience. So to put it in M&amp;A terms, think about it as a company with two divisions in separate verticals. Comp the multifamily and commercial portions separately based on their respective cap rates and add the values together. In my area, commercial cap rates are higher by a couple of points, but their rents per square foot are also higher. Comps are everything.", "replies": [], "depth": 1}]