Information of this kind forms the background for a buyer's evaluation. For any particular property, a simple method is available. With rough adjustments, the cash flow may be capitalized for a snapshot of value. For example, assume a 170,000 square foot community shopping center, in an average location, anchored by a 70,000 square foot supermarket. Fifteen percent is lost because of vacancies, operating costs for the vacant space, bad debt, brokerage, and reserves.
All properties are unique.
For valuation, their uniqueness demands individualized attention. Moreso than for offices or industrial properties, retail outlets are heavily influenced by national trends. Principals in the retail market nationwide make use of increasingly complex analyses. Yet simple methods remain useful to buyers faced with an array of properties to shop among and a need to efficiently narrow the field. The Reenstierna Associates Report is published as a service to the clients of Eric Reenstierna Associates and other real estate professionals.