Commercial BPO's

By
Real Estate Broker/Owner with REMAX PREMIER-COMMERCIAL ASSOCIATES
http://actvra.in/4gqK

Commercial BPO's are getting more popular nowadays. Owners and Banks are in need to have a good idea of the value of their properties on the spot. I have prepared several for owners and financial institutions and I would like to share the Table of Contents any BPO's must have:

 

 The summary should be the short description of the price opinion of the study performed with the magic number in bold.

You should also write an introduction or background of the company/broker performing the BPO.

The subject property must be described in detail, indicating all the relevant features about the property such as type of structure, roof, parking type, number of parking spaces, leasable area, gross building area, lot area, landscaping, etc. also this section must include at least one good picture of the property.

You should also present the demographics including the Retail/office snap shot.

Before performing the BPO analysis itself you must present the leasing activity and the sales comparables in the area which should be defined between 5 and 10 miles depending on the demographics.

 

Puting it all together: Once you have all of the above you just have to crunch the numbers and do a CAP approach and a sales comparable approach and come out with a range of value.

It is important to prepare maps and good pictures of the property and surroundings.

 

 

I hope this would be of some help for my fellow colleagues.

 

Thanks,

 

JM Padron, CCIM

BPO Table of Contents

1. SUMMARY

2. INTRODUCTION

3. SUBJECT PROPERTY

4. DEMOGRAPHICS

5. LEASING ACTIVITY

6. COMPARABLES

7. BROKER PRICE OPINION

EXHIBIT "A" Demographics

EXHIBIT "B" Leasing Activity

EXHIBIT "C" Leasing Adjustments

EXHIBIT "D" Comparables

EXHIBIT "E" Pictures and Maps

Posted by

RE/MAX Premier Associates Group covering South Florida

RE/MAX Commercial Associates a full service Commercial Brokerage Firm

Over 100 qualified agents with the most prestigious certifications, CRS, CCIM

Contact our president at jpadron@remax.net, toll free 855-497-7961

 

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Rainmaker
942,672
Bob & Leilani Souza
Souza Realty - Roseville, Rocklin, Lincoln, Loomis, Granite Bay, Penryn, Newcastle, Auburn, Meadow Vista (California) - Roseville, CA
Placer County, CA: Foreclosures, Auctions, Rentals

Thanks for the info you provided, JM...it's the first "Commercial BPO Template" I've seen here on AR and I'm sure it will be very helpful to those just getting started in the world of commercial real estate. :)

Leilani (Souza Realty)

September 10, 2009 04:40 AM #1
Rainmaker
278,537
JM Padron
REMAX PREMIER-COMMERCIAL ASSOCIATES - Miami, FL
ACP, CCIM, CDPE, CRB, Ft. Lauderdale-Doral-Sunny I

Seilani,

 

My pleasure, I will keep posting commercial educational material.

September 10, 2009 04:54 AM #2
Rainmaker
891,836
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

JM, nice package for putting a Commercial BPO together. Thanks.

September 10, 2009 08:03 AM #3
Rainer
12,141
Pete Mitchell
Saddleback Valley Real Estate and Mortgage - Rancho Santa Margarita, CA

Hey JM,

I have done countless residential BPOs but never a commercial. I am one that got in on the tail end of the residential REO wagon here in CA and really did not benefit - only a few listings.

I do have some commercial experience and I am looking for a good source to get trianed. I remember back when I got into residential, I was able to go through 2 or 3 different training sessions and got certified by the clients. In commercial, I have not found a source. A lot of my residential asset management firms are moving to commercial and I need to get on board. I appreciate any suggestions.

Thanks,

Pete

September 16, 2009 04:48 PM #4
Rainmaker
278,537
JM Padron
REMAX PREMIER-COMMERCIAL ASSOCIATES - Miami, FL
ACP, CCIM, CDPE, CRB, Ft. Lauderdale-Doral-Sunny I

Dear Pete,

My advise consist of three magic words: Education, Technology and Networking. The commercial field is much more different that the residential field. In residential you deal with emotions, in commercial you deal with numbers!

Education: I would recommend you to taker at least the CCIM Introductory course and the CCIM 101 course to get an overview of the commercial arena and to obtain the financial basis to perform the required analysis.

Technology: You will need to get Costar and Site to Do Business, two fundamental programs to be able to perform in toady's market.

Networking: Sign in with the local CCIM Chapter, the RCA Alliance District and perhaps ICSC if you would like to specialize in Retail, or NAIOP if you want to specialize in office. meet the commercial practitioners in your area.

 

As a closing tip: get a Mentor within the organization you chose to work from, he will guide you hand by hand to achieve tour steps toward becoming a commercial professional.

Hope this summary be to your advantage and guidance.

 

Thanks,

 

JM Padron, CCIM

 

September 16, 2009 05:18 PM #5
Rainer
12,141
Pete Mitchell
Saddleback Valley Real Estate and Mortgage - Rancho Santa Margarita, CA

Thanks Jim,

Will look into it. I appreciate you sharing.

Best regards,

Pete

September 16, 2009 05:44 PM #6
Rainmaker
243,397
David Jirasek
Jirasek Realty - Temple, TX
ALC, CCIM

Great points JM. Site To Do Business is an excellent tool to use for demographics. Commercial/Industrial BPO's vary a lot, and getting sales/leases is always ongoing. And as you mentioned, sometimes you do have to expand the neighborhood to the next town, or county.

October 05, 2009 10:02 PM #7
Rainmaker
278,537
JM Padron
REMAX PREMIER-COMMERCIAL ASSOCIATES - Miami, FL
ACP, CCIM, CDPE, CRB, Ft. Lauderdale-Doral-Sunny I

David,

 

Thanks for your inpu. Let's see if we can put referral deals together.

October 09, 2009 04:09 PM #8
Anonymous
Anonymous
JD

Nice post! We've been doing commercial BPOs in the Atlanta Georgia and North Carolina markets for almost 10 years now. A lot of the ones we're doing these days are for lenders who already have appraisals on bank-owned properties and want a 2nd opinion. Even more are for lenders who haven't yet taken back the property and are looking for a cost effective way to gauge the value of the asset without paying the high price for the appraisal, not to mention the turnaround time for them nowadays.

April 22, 2010 09:22 PM #9
Anonymous
Anonymous
Chuck Hernandez

Who would I approach for doing commercial Bpo's?

Thanks

Chuck Hernandez 831-234-6626

February 21, 2011 12:49 AM #10
Rainer
8,360
Karen Spann
RealNova Real Estate Group - Atlanta, GA
Virtual Marketing Coordinator

Great post David!

We provide commercial and residential BPO / BOV nationwide for investors, banks and asset managers.  I will definitely share your tips with some of our U.S. Real Estate Professionals.

Thanks,
Karen Spann
BPO/BOV Coordinator
RealNova.Com
 

April 14, 2011 11:33 PM #11
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Rainmaker
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JM Padron

ACP, CCIM, CDPE, CRB, Ft. Lauderdale-Doral-Sunny I
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