Seeking Help Determining Rent for Underutilized Rezoned Land

[ValuationNovice]

Non-appraiser trying to determine how to calculate what the rent would be on a 5-year lease if the rent is based solely on the value of the underutilized rezoned 3-acre parcel. Currently the parcel encompasses a one-story retail/flex building and parking. The parcel was rezoned to allow a 5-story multi-family residential building with first floor retail. I assume I look for sales of similar underdeveloped sites with the same zoning in the area, determine the relevant cost per square foot, multiply by the parcel size PSF and divide by the cap rate to get annual rent. Does that sound correct? Am. I missing anything?

 

[Tiffany Gibbons]

Non-appraiser trying to determine how to calculate what the rent would be on a 5-year lease if the rent is based solely on the value of the underutilized rezoned 3-acre parcel. Currently the parcel encompasses a one-story retail/flex building and parking. The parcel was rezoned to allow a 5-story multi-family residential building with first floor retail. I assume I look for sales of similar underdeveloped sites with the same zoning in the area, determine the relevant cost per square foot, multiply by the parcel size PSF and divide by the cap rate to get annual rent. Does that sound correct? Am. I missing anything?

Divide by what cap rate?

 

[Terrel L. Shields]

No, that doesn't sound right...I am not sure I understand and where did you get the cap rate?

 

[sputnam]

I bet you would remove your own appendix too. No need to pay an expert... right?

 

[Zoe]

You have demolition costs too if you are totally changing the use of the land.

So yes as if vacant should be considered on the land and as if improved "as Is" and "as proposed".

MV definition is only value definition that I am aware of that requires H&B use analysis.

I am not trying to be ugly. But you are putting cart before horse.

 

[Zoe]

I have a question. Would have many but just one right now.

Who got the zoning changed? Tell me why they did it.

Is it current owner?

My questions would mind boggle you.

Was it City or County?

MV definition requires motivation analysis and H&B use.

It is not if and or but. It is required.

 

[Zoe]

You want rent estimates from professional? No problem.

Not MV opinion.

Consulting fee.

Leasehold or leased fee value?

No problem.

Not Market value. Whole game changes.

MV requires H&B use analysis.

 

[Zoe]

I hope your development gets done and is H&B use on MV definition.

I don't write the definition of your definition of value.