It depends on the asset. What comparable property in the area have recently “SOLD or LEASED.” What comparable property is currently on the market. Other mitigating factors include special amenities such as increased parking, special use permits, excess power, surplus land, fenced yard, and close proximity to freeways all need to be taken into account.
For Vacant Land, we refer to comparable sales price per square foot of similar parcels within a geographic range and evaluate the property’s inherent characteristics such as if its located on a signalized corner, midblock, urban, or in a rural location. In addition, we look to see what is currently on the market and what prices are being asked.
For a Vacant Building, we would refer to the price per building square foot of similar sales within a certain radius map and take into account its age, parking ratio, condition, amenities, and location.