(Minneapolis) What is a typical rate for commercial real estate sellers/buyers?
I was recently told 7%.  Does this seem legit?
[{"id": "ctia44e", "text": "1) It's almost definitely going to vary by product type/size\n2) Brokers need to be very careful when discussing fee amounts to avoid violating anti-trust price fixing regulations. That's why it can be difficult to get this information.", "replies": [], "depth": 1}, {"id": "ctibiox", "text": "ask a few different brokers in your market.  Like /u/cbarrister says this varies on tons of shit.  When people ask me what my rates are my next question is always \"well tell me about the property first\"", "replies": [], "depth": 1}, {"id": "ctj0ba4", "text": "The cap rate depends less on the location and more on the stability of the business leasing the income producing property.  I would say that 7% is a stretch unless there is a national tenant in there with at least 10 years left on a solid NN or NNN lease. Take a look at these current ASKING market caps:\nhttp://imgur.com/a/1EwtJ", "replies": [{"id": "ctj7adm", "text": "This is good stuff, do you have it in xlsx?  ", "replies": [], "depth": 2}], "depth": 1}, {"id": "ctj792g", "text": "Super broad, what type of product is it, lease term, location, quality, etc.  ", "replies": [{"id": "ctjg1d0", "text": "We're in Minnetonka, suburb of Mpls.  Two floor single-tenant office building in a well-known office park off of two heavily trafficked local highways (169 and 62) with visibility from those highways.  Access is more confusing, the office park has it's own system of winding roads.  Last appraised when it was purchased in 2005 for $1,160,000.  Site size is 89,000 sq/ft+, with 8,200+ sq feet of building.  Built in 1980, good quality with new bathrooms and carpets.", "replies": [{"id": "ctjg2j3", "text": "That appraisal was splitting the difference between the income and sales comp approach.", "replies": [], "depth": 3}, {"id": "ctjjbso", "text": "Sounds like a 7 cap all day long but I don't specialize in that submarket.  ", "replies": [], "depth": 3}, {"id": "ctlhvnw", "text": "is it vacant? if not the quality of the tenant, term left, options etc play into it a lot.  If so I'd be more inclined to look at other vacant properties as comparables on a $/sf basis than relying on a cap analysis.  I'd still probably look at it but the comparative holds more weight IMO in that situation", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]