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#1552698 --- 07/21/20 04:48 AM Re: $7,372,188.00 ? [Re: bluezone]
Tacitus Offline
Member

Registered: 03/23/15
Posts: 339
If NOI = Net Operating Income, you are comparing the income-generating capacity of the business with the value of the property, ie. the land plus the building. Unless the buyer is also a huge drug store franchise, how does this make sense?

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#1552701 --- 07/21/20 07:20 AM Re: $7,372,188.00 ? [Re: Tacitus]
Formermac Offline
Gold Member

Registered: 10/22/12
Posts: 18033
Loc: Above ground
What was the original premise for this posting? Debating the actual asking price for a commercial parcel. now in your attempt to be correct, you're debating NOI, the subject within itself has nothing to do with independent workings related to demographic,location and local economy. The asking price is correlated to the type of business the willingness of buyer to invest which has no relation to what the local government states. You are now in the operative zone of conflating several factors to make a point.........while you're at it answer my question of the property tax exemption currently in Geneva. Your best bet to to not show your ignorance unless you're on the County board, city council or currently own a vast number of commercial property within Ontario County, any of which is looking at your post...I know one which we had an extensive conversation via phone call yesterday....yes I still have contact with certain elements related to Geneva.

It's ignorance within the city's and county operation which has cost the lost of the Outlet Mall 25 years ago while adding companies that buys permission to pollute the sky with Nitrous Oxide and contaminate the ground water.
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#1553410 --- 07/29/20 08:29 PM Re: $7,372,188.00 ? [Re: Tacitus]
bluezone Offline
Diamond Member

Registered: 12/19/04
Posts: 33448
Loc: USA
Originally Posted By: Tacitus
If NOI = Net Operating Income, you are comparing the income-generating capacity of the business with the value of the property, ie. the land plus the building. Unless the buyer is also a huge drug store franchise, how does this make sense?


If a business generates $750,000 noi it would not make sense to sell it at the assessed value of $2.5 million.

In just over 3 years the new owner would be profiting the full $750,000 noi

There are a number of ways to value a business

Noi

Replacement cost

Future value if there is an expected large expansion of a neighboring business that would draw customers to this business

Hamilton street has been fully developed putting land and buildings at a premium on a high traffic street
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