Market Knowledge
Market Knowledge - knowing rents and values (and what drives them) over time
One characteristic of people with market knowledge is that their antenna are always up looking for what they don’t know that happened yesterday. Cold calling is one of the best sources of market knowledge. Every appointment you don’t get leaves you with the possibility of finding out something before getting flushed.
Seeing the inventory
- Drive every street zoned multi res, see every building
- Observe the comparative condition of the buildings and the locations.
- Don’t miss multiple ownership of 2-4 unit buildings.
- Multiple ownership of condominiums within complexes
- Under help –county fact sheets in win 2 data
Rent Surveys
- Rent comparables-surveys in person and by phone for rents, occupancy, traffic levels, traffic sources, tenant quality, time to re-rent, concessions, free rent, renegotiated rent, historic turnover, collections.
- See the interiors as part of some rent surveys until you can drive by a building and know what the units look like inside.
- Manager quality appraisal, building issues, was the office open. Mgr – looks good, property looks good, sells good.
- For Rent magazine/ forrent.com, College area for rent sites like UC Berkeley
- Craig’s List
- Part of your cold calls
- Know the drivers- population, jobs, new construction, barriers to entry, rent control, home affordability comparisons
Retail Lease rate Sources
· Chronicle sec 9830
· Loopnet, Cityfeet,
Globe Street
· Co-Star Properties and Comps
· For Lease signs/ active leasing agents
· Cold call info gathering
· Business Journal
· Shopping Centers today/ Centers/ Shopping Center Business
· NRG E mails
· OBR email available lists
· MLS?
· Co-Star Properties- (office)
· Crittenden
Multi Family Rental info
| www.rent.net |
Sales Comparables
- Sales comparables- What’s sold what’s on the market
- Comps & on line transfers
- Who’s active Buying and selling who bought and sold the last ten-twenty deals, who were the brokers and Lenders , Title Companies & appraisers
- Watch what gets Listed and how fast it sells and at what price
- Going to Open Houses
Values
- What are values in your area- current GRM, CAP, $/u, $/ft? historic growth? Perceived upside? Changes due to ______.
- Transaction velocity- current- historic
- Strength of buyer demand for your area
- What lenders will do in your area
Retail
- MNET
- Comps
- Loopnet
- Chronicle Section 517
- Commercial property Guide
- Broker meetings
- Crittenden
General Market info
- Is there building
- How is the retail, office and industrial sector doing
- What do the demographics look and feel like- ie job and population growth
- What’s the political climate re rent control or construction
- Who are the major employers
Owners association
Broker meetings
Read Robert Bruss Newsletter
Vendor List- roofers, insurance, appraiser, phase I, attorneys, property managers, accomodators
Keep a market diary
Finding out who the big, small and aggressive property management firms are.
Demographics:: income , home prices , affordability index- own vs rent, job and population levels and growth
Local Laws- rent control, UST, smoke detector, zoning, rent board meetings, city council meetings
Planning department- what’s being built or in application?
Identify a couple of willing Customer service departments at Title Companies
Financing- Everything about what Lenders are doing on buildings in this market
Apartment Owner association membership and meetings and tradeshows
Tax law- depreciation, interest deductibility, 1031 exchange
Knowing good; appraisers, accommodators, escrow officers, roofers, insurance agents, Phase I and other environmental inspectors and remediators, Loan officers, property managers, attorneys and accountants