It started with a call to a well known local commercial broker who had a listing similar to a property under appeal. The Assessment Professional (AP) had a pretty simple, yet pointed, question: What rent rate is achievable, as opposed to hoped for?
The broker, rather than being offended at such direct questioning, candidly confided: Five to ten percent is always at play in these deals, unless the market is strictly defined, which almost none are.
Knowing this type of transparency is not always forthcoming from market participants, the AP set about using the experience to best advantage. Brokerage inquiries for this AP became more productive, because future questions were designed in a more generalized manner.
Some examples for future questions:
Your listing on Main and Center for $21 full gross is similar to a property I am trying to value. Is there typically much give on list price for properties like this and if so, would the range be as high as eight or ten percent?
After some research, your CBD listings seem really pretty close to market. Do typical negotiations for this type space focus on tenant improvement allowances, length of term, or simply on rental rate?
In my research, office ownership expenses seem variable in this market. Can you give me a general dollar amount expense range for this product, and what might be the most important expense category?
Brokers do respond to general and relatively simple inquiries and often expound beyond the inquiry in an effort to help; just don’t make the initial questions too pointed or complicated.