If a management company is subleasing office space out on a short-term basis, there are a lot of uncertainties about the durability of the income stream.
This plays into the valuation model, according to Lucas Rotter, CEO of appraisal software developer Valcre and a former appraiser for a wide range of asset types at Collier.
"They [appraisers] would view that space as owner-user, which they would apply market rent to," Rotter says.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
