037. How to Determine the Value of Commercial Real Estate Investments

Today, we’re going to be talking about the 4 main ways that commercial real estate is valued. When determining the value of residential real estate, investors have a pretty easy time. You simply log into the MLS or check Zillow for comparable properties in the area and utilize the price per square foot to determine the value of the asset you’re reviewing. Analyzing commercial real estate, on the other hand, isn’t quite as simple.

There are four common ways to determine the value of commercial real estate:

Sales comps

Cap rates

Replacement costs

Gross rent multiplier

So, here’s how to determine the value of commercial real estate.

Show notes:

www.tylercauble.com/podcast/episode037