What is a CRE Comp?

Commercial Real Estate (CRE) Comparable (Comp)

A CRE Comp is a Commercial Real Estate opinion of value.  CRE Comps are put together by qualified and experienced commercial real estate brokers in your marketplace.  CRE Comps are sometimes called a Broker’s Price Opinion (BPO) or a Broker Opinion of Value (BOV).

Why are CRE Comps used?

CRE Comps are most often used when a lender or property owner

  • does not want to incur the expense of a full appraisal
  • does not have the time to wait for a full appraisal
  • a customer wants an equity line on a property
  • a customer is delinquent or in default and a foreclosure is imminent
  • a customer wants to refinance

How are CRE Comps used?

CRE Comps are used when an accurate and efficiently delivered opinion of value is needed by a lender, property owner, or business owner.  CRE Comps are used to freshen up previous appraisals to see if the market conditions have changed substantially from an original loan.  The up to date market driven price opinion is the most efficient way to verify a property’s value when comparing it to the remaining loan balance, an equity loan, or a refinance request.

Who should order a CRE Comp?

When you need to know a commercial real estate property’s value.

Bankers and Lenders:

  • Is a customer requesting an equity loan on their commercial real estate property?
  • Is a customer requesting to refinance a commercial property?
  • Is a customer behind on payments and you need to work something out?

Business Owners Who Own Their Own Real Estate:

  • Do you need to refinance?
  • Do you have business partners to buy out or split equity with?
  • Are you considering a sale/leaseback with your business owned commercial real estate?
  • Is your lender pressuring you on your loan and you want to know where you stand?

Business Tenants:

  • Do you need to know if you are paying above market lease rates?
  • Do you need negotiating leverage for new or existing lease discussions?
  • Do you need a market analysis for strategic value against competitors?

Developers/Investors:

  • Are you planning a new project and you need to determine asking lease rates?
  • Do you need to know your expected NOI for a new acquisition or redevelopment?
  • Do you need to determine a sales value for your dispositions and exits?

Where can I get a CRE Comp?

CRE Comps can be obtained from any major market that has a strong commercial brokerage presence.  CRE Comp, LLC relies on local market experts for all CRE Comp, LLC reports.  Only commercial real estate brokers who are tied into the fabric of a local market can adequately provide a qualified broker price opinion.

How much does a CRE Comp cost?

CRE Comps are typically 10-20% of the cost of a full commercial real estate appraisal. CRE Comp, LLC will provide you with a simple questionnaire to determine the scope of your CRE Comp needs and will quote a project specific price for each CRE Comp request.