CRE broker overpricing · Commercial Real Estate 101

Mar 11 • Banter

CRE broker overpricing

I assume this is a fairly common occurrence and I just need a diplomatic way of dealing with it. It seems brokers are justifying prices for their clients with unrealistic numbers. Most often I find that they price a property based on unrealistically low operating expenses. They show an actual 22% operating expense on the T-12 and then use the inflated NOI to justify prices. Should this just be ignored as sales puffery? The last broker insisted "that we know our pricing is accurate."

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CRE broker overpricing