243. Valuing Commercial Properties | Brokers Round Table

Key Takeaways:

Commercial property valuation involves considering many factors beyond just the cap rate, including rent roll, tenant credit, market trends, population growth, and development costs.

Filling information gaps through networking and direct communication is crucial, as data sources like CoStar may not always be accurate or complete.

Sudden changes in the market, like interest rate spikes, can significantly impact property valuations and require frequent re-evaluation.

Diversifying risk by having multiple tenants in a property is important, rather than relying on a single large tenant.

Experienced investors who have been through real estate cycles are valuable, as they can better anticipate and manage risks.