Concessions on Commercial Property

[Terrel L. Shields]

Has anyone encountered concessions on the sale of a Commercial property (cafe)?

I'd consider that unusual and doubt I find any comps with such concessions. While it does not impact the subject valuation, it will if used in the future as a comp in my book.
$7500 on a sale under $400,000.

 

[Fernando]

I don't do commercials but one time I remembered a CoStar Rep called me and asked many questions about my building. He was rather detail but I desired my privacy and cut short the interview.
I don't know now but does CoStar provide much privy on comps besides calling the agents for more information.

 

[Gobears81]

Concessions would be unusual for my market, though commercial sales seem to have a high percentage of unusual factors, such as the buyer paying for back RE taxes or the seller paying for a roof to be installed (or crediting for this). Might be indicative of where the market is, but most buyers are paying high prices AND not getting any concessions of late. Perhaps that will change if interest rates keep increasing.

 

[PL1957]

Concessions would be unusual for my market, though commercial sales seem to have a high percentage of unusual factors, such as the buyer paying for back RE taxes or the seller paying for a roof to be installed (or crediting for this). Might be indicative of where the market is, but most buyers are paying high prices AND not getting any concessions of late. Perhaps that will change if interest rates keep increasing.

Most unique concession I ever saw on the commercial side was in the early 1990’s. A major office building in downtown Louisville attracted their anchor law-firm tenant by agreeing to purchase the law firm’s existing owned building as part of the 10 year lease.

 

[Fernando]

Listing agents love to have higher rents so valuation can be higher with set cap rate.
One listing I saw had contract rents plus owner willing to pay extra for like two years initially for the new buyers.
Would that be a concession?