Rick Tannenbaum, CRE – 2016 Editor in Chief
What is a comp ?
This is not an existential cry but rather a fundamental question that impacts Counselors every day as we price, underwrite, finance and value real property. Of all the variables that affect the relevance of a comp, I want to focus on one that is troubling me today – buyer motivation.
Like many of you, I am shaking my head at some of the asset prices today and wondering how to apply these to my own analysis. A client was recently very fortunate to sell a very high quality asset at a record price to a buyer faced with a huge capital gain from a prior sale. But does this transaction’s price set a comp for everyone else in the marketplace? How can we, as Counselors, acquire that level of transaction insight to interpret and then give good advice?
I’ve posted this question on The Counselors’ LinkedIn group page and hope that, by the time you read this publication, there will be many Counselor comments and opinions waiting there for you – and that you will add your own thoughts. These on-line forums can be a great tool for Counselor discussions on important topics. What question are you dying to ask your fellow Counselors?
Our new-look web site is up and running, with the input of many Counselors and thanks to our exceptional staff – please check it out if you haven’t already. And the Counselor Annual Convention is coming up September 25-28 in Washington D.C. – please take a look at the Schedule of Events to see the great topics and speakers for the event.