Successful commercial real estate (CRE) deals rely on accurate data and market insights. Finding reliable comps for commercial real estate is crucial for achieving the best pricing and outcomes. In this article, we will explore some tips and tools to simplify the process and make it more efficient.
Why Accurate Comps Matter in Commercial Real Estate
Before discussing the methods to find accurate comps, it's important to understand why they are so important. Accurate comps provide valuable information about pricing trends and market conditions. They help both buyers and sellers determine the optimal price for a property, leading to successful transactions.
Utilize Reliable Sources with Extensive Property Data
Thanks to advancements in technology, there are now various providers offering commercial property data and tools to simplify the research process. These platforms eliminate the need for tedious manual research by providing comprehensive property records and price history. When choosing a commercial property data provider, ensure that they offer a detailed database with comprehensive filters and conditions to generate accurate pricing estimates.
The Importance of Complex and Accurate Filters
While some comps tools offer only basic filters like general area/market, property size, and latest sale date, it is essential for CRE professionals and clients to have access to more flexible options. Look for tools that provide a wider range of filters, including square footage, sales history, property class, and customizable location filters.
By inputting more data points into your comps tool, you will obtain more accurate results. This accuracy allows owners to price their assets optimally, appraisers to establish a basis for appraisals, and CRE professionals to provide valuable guidance to their clients.
Choosing Between Commercial Property Price History and Comps Analysis
Before running a comps analysis, it's important to clarify the type of commercial property sales data you need. If you want to gauge market activity and potential listing prices, a quick and easy-to-use comps tool will provide up-to-date results. On the other hand, if you require detailed historical data about a property, such as pricing and ownership history, violations, upgrades, occupancy, and liens, a comprehensive property report will be more suitable.
Simplify Your Comps Analysis with Efficient Tools
To simplify the process of finding accurate comps, consider utilizing a state-of-the-art tool like CommercialEdge. This tool offers access to the latest sales and lease data, providing accurate and up-to-date comparables for your target area.
CommercialEdge's comps tool allows you to search for your desired property by address or parcel ID and apply various filters to create a precise list of comparable properties. These filters include commercial property sales history, property type, building class, lot size, and building square footage.
Once you have generated your list of comps, the tool will provide valuable information such as the median price, lowest and highest recorded sale prices, and price per square foot. It will also provide a valuation of your property based on the data from your comps list.
Utilizing a comprehensive and efficient tool like CommercialEdge saves time and resources, allowing CRE professionals to focus on other critical aspects of their business.
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In conclusion, finding accurate comps for commercial real estate is essential for successful dealmaking. By utilizing reliable sources, complex filters, and efficient tools, CRE professionals and clients can obtain valuable insights and make informed decisions. So, take advantage of the available resources and simplify your comps analysis process for optimal results.
