Dallas Market rent is the rental rate paid in an arms length transaction. Market rent analyses evaluate the subject property, competing properties, and market conditions to document an equitable level of rent in an arm's length transaction. Market rent can vary within a building depending on location and height. For example, the end cap in a retail center will likely merit a higher rental rate than space in the "elbow" or corner. A high-rise apartment with a great view will command a superior rental rate to a unit with an unfavorable view. Estimates of market rent are developed regularly for market studies, appraisals, lease disputes, and to provide an owner or prospective investor with objective opinions. The scope of work can vary markedly depending on the purpose of the assignment. The monthly effort to review rental rates for an apartment complex are likely less than the effort to determine the renewal rate for 250,000 square feet of office space for 10 years.

Steps in market rent analysis include:

• Review of subject property;
• Visit subject property and interview on-site staff;
• Select rental comparables; The availability of highly similar rental comparables reduces the adjustments needed and improves the accuracy of the opinion of market rent.
• Gather data on rental comparables;
• Visit rent comparables and interview on-site staff;
• Review market data regarding rental and occupancy rate trends;
• Summarize rental rate features and amenities of subject property and amenities;
• Make adjustments for differences between sale price and comparables (based upon data and insights obtained during visits to rent comparables);
• Summarize and report conclusions (report can be oral to detailed narrative report).

The market analyst often gains insights into financially feasible upgrades which can increase the market value and rental appeal of the property. When contemplating a market rent analysis it is prudent to consider including suggestions for financially feasible upgrades as part of the scope of work. The data gathering and analysis will take a modest about of additional time. Suggestions for upgrades can enable the owner to substantially enhance the value of the property.

O'Connor & Associates is the largest independent appraisal firm in the southwestern US and has over 40 full-time staff members engaged full-time in valuation and market study assignments. Their expertise includes market rent analysis, feasibility studies, valuing real estate, business personal property, business enterprise valuation, purchase price allocation for businesses, valuation for property tax assignments, partial interest valuation, estate tax valuation, expert witness testimony and valuation for condemnation. They have performed over 10,000 of market rent analyses.

To obtain a quote or further information on market rent analysis services, contact George Thomas or Craig Young at 713-686-9955 or fill out our online form.