Is there a specific LEASE price to SALE price ratio or formula?
Hey guys...

Newbie aspiring Commercial Agent here looking for some guidance...

Is there a specific formula to calculate the current market SALE price of a condo warehouse based on just the price comp units have been LEASED for?

Unfortunately my current office focuses on luxury residential and the agents I have asked have no clue about anything related.

Thanks for your time!
[{"id": "cd9eorn", "text": "There is no direct ratio between the two, but it can be calculated by taking all the building's income (rent) and deducting all the building's expenses (insurance, property taxes, maintenance, utilities, management costs, etc.) and then applying the applicable Cap Rate to find a sales price. That is called the income approach, sales price can also be determined by looking to comparable sales in the area.", "replies": [{"id": "cd9fbj8", "text": "Perfect! Thanks my man!\n\nThe reason I can't use comp sales in the area is because there have been none for the past 13 months. (To my knowledge that figure is most likely not accurate anymore) The specific Condo-Warehouse I am looking at has 4,000~ Sq/Ft. All the recent sales have been FULL Warehouses in the 12,000-21,000 Sq/Ft. Range. \n\nIn commercial real estate is it acceptable/accurate to just calculate the $/Sq.Ft. SOLD and just apply it to a smaller size? As long as the property is comparable of course.\n\nThanks cbarrister.", "replies": [{"id": "cd9myt2", "text": "$/SF is the most recognized basis for office/warehouse.  Remember that office space will likely push that number up, as office space is typically more valuable.  Additionally, smaller spaces will likely have a higher $/SF due to economies of scale.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cd9mxq8", "text": "To expand on u/cbarrister's comment, you can also look at the annual income less vacancy (use a market vacancy for the property type) and apply an effective gross income multiplier.  It's primarily used for smaller multi-family properties, but should give you a general range of value.", "replies": [], "depth": 1}]