Tuesday, March 16, 2010
Commercial Realty Valuation Question
Generally, when tenants talk about prospective commercial spaces they talk in terms of price per a square foot. This makes sense in that its a small unit of quantification that is easily comparable between locations. Moreover, many prime tenants are either corporately owned or franchises and consequently utilize operational systems that are based upon statistics. Yet, do you think that commercial spaces on Main Street should be discussed in terms of price per square foot or just as a more vague market value? I find on Main Street the latter is often used, but maybe Main Street should follow Wall Street and use the square foot measurement more. It would bring objectivity to the market and optimize the valuations of property.