Optimizing the sale price of an income-producing property is the product of the "Smart Approach" to managing and leasing. Capitalization rates are derived from two components: yield and risk. Many investors find disappointment with properties upon which they made a buy decision on yield alone. Yes, the quality of the income stream is deeply rooted in location, but complementing the quality of tenants with any location is as much art as science. High end retailers generally reside in high end locations, but low end locations may also offer lucrative profits to high credit tenants, which in turn lowers the risk of the income stream. Wise management and leasing decisions lead to lower captialization rates, which lead to higher sale prices.
We also represent Buyers of Income Producing Properties. The "good deal" is inherent within the foregoing discussion on capitalization rates. If an owner does not apply the "Smart Approach" to property valuation, then their poor management/leasing decisions result in a lower than market income stream. The market often refers to this scenario as properties with upside. Since income stream is the foundation to valuation, we strive to offer buyers with the business strategem of buying low and selling high.
Whether you are a Buyer, Seller or long term holder, we would appreciate the opportunity to optimize the value of your real estate portfolio.