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Like I say, if you’re a lender that only gives a shit about stabilized NOI, that’s A-Ok. But if I’m signing an appraisal that asserts a Market Value with no ext
by jamwil 2y ago
Like I say, if you’re a lender that only gives a shit about stabilized NOI, that’s A-Ok. But if I’m signing an appraisal that asserts a Market Value with no extra assumptions or conditions, that market value will account for your free rent and TIs.
Can I ask out of curiosity, are you located in the maritimes?
- voisin 2y agoNo, I am located in BC now (Cranbrook) but primary assets in Ontario (link in profile) and working on a project in Alberta at the moment. I did live out near Halifax for a good chunk of Covid and had offers in on projects in Halifax and Sydney. Happy I didn’t get the Halifax projects but still sad I missed the Sydney project.
- jamwil 2y agoNice. I'm also in B.C. now (Vancouver) but spent most of my career so far in Calgary. I realize the source of confusion here — I said NOI is based on NERs in my first comment when I should have said market value. NOI would indeed typically be stabilized at market face rents, and then we would apply below the line adjustments for off-market rents, abatements, leasing/capital costs, etc.