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Cap Rates

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IlliniApp said:
I would be interested to hear from those that are doing AG appraisals what the cap rates are for vacant farmland in their area. Here they are only 1.9-2.2 roughly.
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Pretty common in ag country here. Since most of the area is in transition to development, doesn't apply. Cap rate using pasture rents would be roughly 0.1%. New building intensive farms like poultry farms would average 9-12% cap rate.
 
Terrel L. Shields said:
Pretty common in ag country here. Since most of the area is in transition to development, doesn't apply. Cap rate using pasture rents would be roughly 0.1%. New building intensive farms like poultry farms would average 9-12% cap rate.
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Be sasier maling ajustments for l;ocatio. No disepect. You are locat4ed in my favorite President in my lifetime. He carried TN. My wife woul;d have killed me.
 
There are rumors the Clintons killed people. I don't believe that. GOP rumors. LOL
 
I did win like $400 on a penny slot machine in Arkansas. Wife was in bathroom and came back and the slot machine kept ringing. We had already lost like $20 dollars on the greyhound races. They don't run the greyhounds in West Memphis Ark anymore.

I cashed out and said we are leaving honey. We are going somewhere. We went to downtown Memphis that night I think. The little lady at cashier at casino said that didn't take long. I said baby, I don't take long. LOL
 
To be honest, I don't know how POTUS went bankrupt on a casino. The odds are always in favor of the casino.
 
I went to see my rental in SF this morning. It's a nice area not in Felony Flat type area.
For past ten years, there is this corner building which has been vacant. It was used as office space. The writing was on the wall that office space for old buildings was less desirable even a decade ago.
I can't understand why owner or Lease Agents can't rent it. It's a sore sight and doesn't help my property value.
A year ago, the building was remodeled but still vacant.
Imagine appraising that building having no rent income for so long.
 
Not necessarily the perfect storm, but the current economic weather for office buildings is pretty stormy

  • Occupancy and rental rates decline
  • Expectations going forward are dim for any recovery of that occupancy or those rental rates
  • Mortgage interest rates increase so the dept service gets more expensive
  • Fixed overhead remains the same regardless of occupancy
  • The more recent sales comparables are suffering equally and being forced into foreclosure
  • REO resales go off at a much lower price that is closer to being possibly to service the mortgage payments. Those lower prices set the current pricing. Not to mention the active listings basically establishing or exceeding the upper limit of value.

Yeah, such a combination will have a profound impact on the value. Especially the changing vacancy and rent factors. The lower 2025 valuation doesn't necessarily mean the property was previously overvalued the last time it was refinanced 5 years ago, although that's also a possibility.
 
Cap rates, huh? I think you can get a decent cap for about $25.
 
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