Commercial BPO's

By
Commercial Real Estate Agent with REMAX PREMIER-COMMERCIAL ASSOCIATES

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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Topic:
ActiveRain Community
Location:
Florida
Groups:
REMAX COMMERCIAL
Tags:
commercial bpos
coomercial real estate
remax commercial associates

Comments 11 New Comment

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Rainmaker
229,609
David Jirasek
ALC, CCIM
Jirasek Realty

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
Rainmaker
259,107
JM Padron
ACP, CCIM, CDPE, CRB, Ft. Lauderdale-Doral-Sunny I
REMAX PREMIER-COMMERCIAL ASSOCIATES

David,

 

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

October 09, 2009 04:09 PM
Anonymous #9
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
Anonymous #10
Anonymous
Chuck Hernandez

Who would I approach for doing commercial Bpo's?

Thanks

Chuck Hernandez 831-234-6626

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

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
Anonymous
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Rainmaker
259,107

JM Padron

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