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.

Sage Group is a national network of appraisers working together to provide a single source of information and analysis for
commercial real estate professionals across the country. Their expertise includes valuing partial interests, business personal property, real estate, business enterprise value, purchase price allocation for businesses, valuation for property tax appeals, estate tax valuation, expert witness testimony and valuation for condemnation.

To obtain a quote or further information for a Market Rent Analysis, contact John Fisher at 713-375-4300, 1-800-856-7325 x 4300, or fill out our online form.