Market Rent Analysis

Published: 07th July 2008
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Market Rent Analysis
Market rent analyses evaluate the subject property, competing properties, and market conditions to document an equitable level of rent in an arm's length transaction. Estimates of market rent are developed regularly for market studies, appraisals, lease disputes, and to provide an owner or prospective investor with objective opinions.
Steps in market rent analysis include:

Review of subject property;
Visit subject property and interview on-site staff;
Select rental comparables;
Gather data on rental comparables;
Visit rent comparables and interview on-site staff;
Review market data regarding rental and occupancy rate trends;
Summarize rental rate features and amenities of subject property and amenities;
Make adjustments for differences between sale price and comparables (based upon data and insights obtained during visits to rent comparables);
Summarize and report conclusions (report can be oral to detailed narrative report).
When contemplating a market rent analysis it is prudent to consider including suggestions for financially feasible upgrades as part of the scope of work. The data gathering and analysis will take a modest about of additional time. Suggestions for upgrades can enable the owner to substantially enhance the value of the property.
O'Connor & Associates is the largest independent appraisal firm in the southwestern US and has over 40 full-time staff members engaged full-time in valuation and market study assignments. Their expertise includes market rent analysis, feasibility studies, valuing real estate, business personal property, business enterprise valuation, purchase price allocation for businesses, valuation for property tax assignments, partial interest valuation, estate tax valuation, expert witness testimony and valuation for condemnation. They have performed over 10,000 of market rent analyses.
To obtain a quote or further information on market rent analysis services, contact George Thomas or Craig Young at 713-686-9955 or fill out our online form.

O'Connor & Associates is a national provider of commercial property real estate consulting services including cost segregation studies, due diligence, comparable sales land abstraction, comparable sales units of measure, insurance valuations, abandonment studies, business personal property valuations, commercial appraisals, financial modeling, highest and best use analyses, and lease audits.

Our services benefit owners of all commercial property types including multi-family housing, retail stores, hospitals, hotels, industrial properties, manufacturing facilities, medical offices, commercial offices, restaurants, self-storage units, shopping malls, shopping plazas and warehouse/distribution centers.

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