David Stott Building Discussion

[Bham1982]

Most commercial real estate investors use a formula based on Net Operating Income to determine the value of the building. The listing shows an NOI of 575,000, which would give the building a value of 5-7 million.

I would like to see the broker's pro forma, because I cannot imagine an NOI of 575k. I would be surprised if even the cash flow from rents and advertising were 575k.

[Khorasaurus]

I would like to see the broker's pro forma, because I cannot imagine an NOI of 575k. I would be surprised if even the cash flow from rents and advertising were 575k.

I don't necessarily disagree, but that's what the listing says. I suspect the operating expenses aren't high, so most of the rent from the tenants they do have is profit at this point.