Quick and Reasonable commercial property valuation.

December 5, 2017

This is unofficial way of valuation but very fair. 

 

If prime is 4.25% for example, borrower ( buyer ) has to make money after paying interest on borrowed money and maitenance. So, for

 

                      A class building, CAP rate has to be Prime plus 2% = 6.25%

                      B class building, CAP rate has to be Prime plus 3% = 7.25%.

                      C class building, CAP rate has to be Prime plus 4% = 8.25% 

                      D class building, CAP rate has to be Prime plus 5% = 9.25%.                         

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