Faced with a growing menu of market and property type opportunities, and sales brochures packaged to look like unbiased information, investors rely on Reis for the clearest picture, and the best possible decision support.
Performing the rigorous due diligence that is so essential to making sound acquisition/disposition decisions can be difficult and time consuming, especially when considering an opportunity in an unfamiliar market. Sure, the metro as a whole is performing well, but what about the particular submarket in which the target property is located? Are the income assumptions reasonable, considering the location and class of the property, the performance of its peers, and the expected changes in market health? Is my investment sales broker giving me the best information or simply trying to close the deal?
When considering a purchase opportunity or pricing a property for sale, our equity investor clients take a few seconds to run a customizable Sales Comparables report. What is the price per unit or square foot for recent sales in the area? What is the average cap rate? A quick look at Rent Comparables, in combination with Reis’s suit of submarket reports, may reveal that the property under consideration is a performance outlier with respect to rent and vacancy and, ultimately, potential revenue—perhaps helping to justify a higher purchase price or a lowball purchase offer. Finally, Reis’s New Construction Comparables can reveal future competitive threats to the subject property’s performance, shedding additional light on the property’s likely performance.