Database Benefits Valuation Clients as Commercial Real Estate Market Demands Skilled Navigation

When I began entering commercial real estate data into a database in 1995, I never imagined it would mark the beginning of an evolving 14 year project. And the same project would wind up having an unusual but suitable name.

Today the product of this effort is a powerful proprietary analytical tool which is being leveraged to provide exceptional benefits for discerning valuation clients throughout Southeastern Massachusetts.

Known as the  Market Mouse database, as a reference to the agility of a mouse in maze adeptly probing and efficiently navigating in search of the most optimum destination or outcome,  this relational database truly is one Mighty Mouse! 

Market Mouse has little resemblance to an automated valuation model (AVM), statistical data product or “valuation instrument”. Indeed, time tested skills such as technical aptitude, cognitive thinking  and constant street level information gathering are still employed. Rather the  Market Mouse data management system has a supplemental role in much of valuation and brokerage activities in which I am retained.

Today the database contains close to 6,500 individual commercial property, transaction and listing records totalling over $3.0 Billion among 70 individual property classes. Linked to 1,300 of the property records are high quality digital images. 

Since its humble inception, a consistent “quality in and quality out” focus has been at the core of Market Mouse. Along with this commitment is the drive to develop unique and meaningful data sets achieved through a range of sorting, filtering and grouping capabilities. Whether analyzing by location, name (buyer, seller, lender or broker), property type or characteristic, time frame, and a host of dollar ranges, its all possible with Market Mouse.

The majority of records cover properties within Barnstable, Dukes (Marthas Vineyard) and Nantucket Counties. In 2007 and 2008 along with a series of tweakings completed by one smart professional programmer, data collection was expanded to nearby Bristol, Plymouth and Norfolk Counties. To date, these efforts have provided a solid return on investment on several levels.

Contact me today and discover how Market Mouse can further your goal of deriving real benefits and reliable outcomes in your next valuation  project whether for one property or a portfolio.

Joseph P. Egan is a MA Certified General Real Estate Appraiser with over 25 years of professional valuation experience. Through a specialization in commercial real estate and closely-held businesses, since 1991 he has completed over 650 appraisal, brokerage and consulting assignments concerning all types of commercial real estate assets and going concerns located on Cape Cod, Martha’s Vineyard, Nantucket, and Plymouth County, MA. Clients served generally include attorneys, banks, corporations, developers, investors, and owners of closely-held and family businesses. Prior to relocating to Cape Cod, Joe worked in the New York Metro Area and throughout CT with leading regional and national appraisal firms such as Cushman & Wakefield. Please contact Joe here.

Market Snapshot: Edgartown, MA

Edgartown, MA- While most market areas are currently experiencing contraction and increasing distress, commercial property fundamentals in the small Down Island business district in Edgartown on Martha’s Vineyard, MA appear to be as favorable as the refreshing summer winds from nearby Edgartown Harbor.

The sale of three retail condominium units acquired in early June 2009 provides some sense of the prevailing winds. 

The three units are located at 4 & 8 Main Street within the Harborside Inn Condominium. The condominium is located on (Lower) Main Street, between North Water and Dock Streets and next to The Boathouse, a recently completed 10,000 square foot private club at the site of the former Navigator Restaurant. 

The location is the busy hub of the established Edgartown business district, an area which generates consistent pedestrian traffic along the brick paved sidewalks uniformly connecting the many mostly seasonal specialty shops and eateries. In addition to a designated Historic District, much of the neighborhood is within Edgartown’s B-1; Business 1 zoning district.

The ground floor commercial units known as Stores A, B & C feature generous display windows and range from 702 to 1,508 square feet and total 2,864 square feet. The recent $2.4 million total sale price amounts to approximately $838 per square foot of gross unit area or an average of $800,000 per unit. The purchasers were a local couple with several commercial property holdings in the Edgartown core business district.

At the time of the sale the units were reported to be fully leased to Chappy’s and Island Pursuit, two affiliated mens and womens clothing shops. Island Pursuit was established in 1983 and offers a wide assortment of luxury brands including Bugatchi Uomo, LaCoste, Lilly Pulitzer, Reef, Tommy Bahama, and Vineyard Vines. In addition to four Florida stores, the retailer has stores in Chatham, MA, Newport, RI and Nantucket, MA.

This recent conveyance is one of only a handful of mostly off-market commercial property transactions recorded in Edgartown over the past 18 months. According to several local sources, the low transaction activity is primarily a function of the buy and hold mindset of many local investors resulting in a limited array of available investment opportunities.

Despite rental rates in the general range of $35.00 to $70.00 per square foot for retail space in the prime pedestrian areas, vacancies are minimal especially by late Spring or just before at the start of the peak summer season. Most rental requirements are in the range of 700 to 1,500 square feet of net rentable area. Reflective of both the tight supply and the close network of  local merchants, it is not uncommon for landlords to receive inquires from prospective tenants either before a tenant moves out or when the vacating tenant is literally in the process of moving. Reportedly, new occupancies include a combination of new businesses and existing businesses desiring to trade up to superior space.