Integra Realty Resources – San Diego has completed a commercial appraisal of an industrial business park property located in the community of Miramar in San Diego. The property consists of two industrial buildings, one that is approximately 23,500 square feet and the other that is 37,500 square feet for a total of about 62,000 square feet. These multiple-tenant buildings, both built in 1987, each have approximately 60% office space, 22 feet of clear height, and 18 loading doors (36 total for both buildings). The suite sizes range from 1,680 to 20,111 square feet. The site is approximately 0.38 acres. The purpose of this commercial valuation was for loan underwriting purposes for a lender.
As of the effective appraisal date, the property was 67% leased; one building was 100% occupied by 10 tenants, while the other building was 46% occupied by two tenants. In this submarket for this type of property, stabilized vacancy is approximately 10%, which means that as stabilized, the property should be about 90% occupied. Therefore, when performing this type of valuation, it is necessary to consider lease-up costs as the typical investor would lease the property to a market occupancy rate.
If you have any industrial business park valuation questions or needs, please contact us today at 858-259-4900 or firstname.lastname@example.org.