|
| |
[ 2004 conference home page ] [ Appraisal Today 2003 National Conference ] [ Advertising ] [ FREE Email News ] [ FREE Sample Copy ] [ Appraiser FAQs ] [ Consumer FAQs ] [ Web site FAQs ] [ Subscriber info ] [ News and links ] [ ApprTech2001 ] [ Humor ] [ Books for appr. ] [ Appraisal info ] [ Business tips ] [ Internet tips ] [ Appr. links A-C ] [ Technology ] [ Our Products ] [ About Us ] [ Site map ] [ Contact us ] [ Search - new ]
Cap rates on the Internet?
(10/98)
Appraisers frequently ask me about getting comps on the Internet. I
recently intercepted a discussion on cap rates on the Internet.
---------------------------------
Hey...wait a minute. Doesn't the 11th Edition relate that the 1997 cap rate for all
buildings is 10.14%?
Thomas D. Morgan
-------------------
I was taught by Ed Compere, MAI that you look for it posted on the
property. It may be a plaque or stamped in the concrete.
I guess I gotta get the 11th edition. I thought it was always 10%. (I hope this doesn't
damage my Prego approach to the OAR).
Scott Jura
---------------------
Most of the quality commercial buildings in my market have data plates.
These are usually brass, about 3 inches by 6 inches. They are often placed on the outside
of the building near the electric service entrance. Stamped on the plate is year of
construction, gross and net area and usually the proper OAR. Sometimes vacancy rates and
expense ratios are included. If the plate is missing or unreadable, one can usually
interpolate from the two adjoining buildings. Use of data plates sure is easier than
deriving the data from the market!
Larry A. McCoy, MAI, RM
-------------------------
Ed was only partly right. While I have found the cap rate stamped in the concrete, as Ed
suggests, I have never encountered it on a plaque. Many developers are getting far more
clever and even devious about where they hide the cap rate. Once, I found it stamped on
the plywood sheathing of the roof, covered by three layers of roofing materials. Another
time, it was cleverly hidden under the flange of one of the porcelain fixtures in the
women's restroom. The moral is that sometimes the cap rates can go through the roof, and
other times it can be in the toilet.
Robert S. Lettman
-----------------------------
Larry -
If you interpolate from the two adjoining buildings, you ARE deriving
the data from the market!
Robert S. Lettman
------------------------------------------
And from another quarter.... I learned from a fellow in Alaska that the real way to get a
cap rate is to look at the "regular" gas price in your area and use the numbers
to the right of the decimal point! Works for me!!!!!
Jeff Osmundson
---------------------------------
The above discussion was posted on the AI (Appraisal Institute) forum,
an unmoderated mailing list. To join, go to www.appraisalinstitute.org.
Be warned, however, that about 50 to 100 messages a day are posted!
|
