What is a commercial real estate comp?
November 6, 2018

What is a commercial real estate comp?

A real estate comparable (often referred to as “comps”) is one of the ways a commercial real estate broker would determine the value of your property. When selling your commercial real estate property, it’s important to be aware of the surrounding market and recent sales in your area to understand how much your property would sell for on the current market.

One aspect of a Brooklyn commercial real estate broker’s job is to study the market and keep track of any investment sales that happen in their focused area, which helps them determine the value of a property presented to them. A broker will typically look at three properties that sold within the last six months that are similar to the property they are trying to evaluate. A few key factors to comparing properties are the property and lot size, condition, age, location, and sometimes, repositioning opportunities. While every building and commercial real estate deal is unique, the comparables help the seller recognize how much their property will go for.

Usually, you can receive comps from your local commercial real estate broker. However, there are certain websites you can use to find comps to your property, or simply understand Brooklyn commercial real estate market trends so you can make an informed decision before you invest in your own property.

A few sites we like to use are Property Shark, LoopNet, CoStar, Crexi, Brevitas, and Reonomy. While a few of these sites offer limited, free information to the public, most of them are available via a subscription. That’s where we come in. As commercial real estate brokers in Brooklyn, we have access to all this information and are constantly studying and striving to provide the most accurate comps to potential inquiring. We also prepare annual market reports based on the comps to provide the market with valuable data about the past and upcoming year in Brooklyn commercial real estate.

The Brooklyn commercial real estate brokers at TerraCRG focus on market trends for property types such as mixed-use, multifamily, development, retail, industrial, and office buildings. By focusing on different asset types within the borough, it allows us to get a wide, yet focused scope of the entire market in order to provide reliable comps to our clients. If you’re interested in receiving comps for your property, be sure to give us a call at 718-768-7688 or contact Mike Hernandez!