This $8M building is going for $108.18 sq ft.

Several months ago I read an article in the Eugene Weekly, an interview with Don Woolley. He talked about how you determine the value of a building. Or how he does anyway.

He said that, on average, you will take the yearly projected or real rent revenue and divide by about 9.5%. So for this building we can assume he would need to collect $760K/yr in rent. Or about $10 sq ft.

What’s great about Whoolley’s interview is how he pegged Lazaar’s (shoe shop) at $.25 sq ft for rent, with a 9.5% divisor. In essence he was saying that Lazaar’s building, assuming it’s about 3500 sq ft, is worth about $110k for the building alone. With the land adding another 25% to that?

If that’s the case, for property on downtown Broadway, then the city had better pay a very low price for the proposed Downtown Collective. Since it may or may not come with a shaman, a bagwan, and a tainted salad bar.

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