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CompStak for Underwriting & Valuation Needs
Whether you represent a buyer or a seller, CompStak is a one-stop shop for all of your underwriting & valuation needs.
With all the data combined from our lease database, sales database, and public record, CompStak provides you with detailed property information, leasing history, and sales records.
Our lease and sales comps include key deal points such as starting rent, net effective rent, TI allowance, free rent, transaction SQFT, NOI, cap rate, true buyer & seller, and much more.
Let’s say you need to determine a property’s value by taking the income approach route. Start by searching your property address, for example, 777 Mariners Island Boulevard in San Mateo, California. Now, you can see each tenant’s leasing space. Let’s download these insights. Once done, open the sheet lease transaction size, lease term, and effective rent.
Next, we can calculate the gross rental income per year from those tenants. Add up all of the rental revenue from these tenants, and you’ll arrive at a total of around $11 million. There’s no vacancy loss because it’s fully occupied. Instead of calculating net operating income — or NOI — by looking at the property’s finances and competitive sets, we’ll look at the most recent sale of the property.
Now let’s go back to our CompStak Platform. Click on Sales and type our property address. Next, select List Sale History. Let’s check out this one and here you’ll sell that the NOI of this building is around $4.2 million. Since NOI is simply the gross income minus operating expenses, this means those operating expenses must be almost $7 million per year.
You can also find other relevant information, such as the true buyer and true seller. Note that the capitalization rate — or the cap rate — of the property is around 4.5%.
Now, let’s go back to our sheet to look at the net effective rent. You’ll notice that several tenants pay around $45 and $46 PSF. If you assume that rents are well below market, the landlord could renegotiate when the tenants’ leases are up for renewal.
And you see the lease expiration date? Many of which are going to expire in the next year or two.
This opportunity may lead to higher rents, increasing the NOI of the property, and making the building more valuable.
Now, to calculate the property’s current value, we’ll divide the current NOI by the cap rate and get around $94 million. With CompStak, you’ll have a clear understanding of the building and its history by simply looking at the leasing activity over time.
You’ll also notice that many tenants have a long-term relationship with the property, or have expanded their footprint. This provides the landlord with stable, ongoing income while limiting the losses incurred from broker fees and other operational expenses associated with tenant turnover.
So, what are you waiting for? Join CompStak and start evaluating properties today!