Property Valuation Report
Comprehensive commercial real estate analysis and valuation
Property Overview
123 Main Street
Charlotte, NC 28202
Property Type Office Building
Size 28,500 sq ft
Year Built 2005
Last Renovated 2018
Current Owner Skyline Properties LLC
Max Occupancy 325
Valuation Summary
Estimated Market Value for 123 Main Street $5,250,000 $184/sq ft
Cap Rate 5.8%
NOI $725,000
Value Range $11.8M - $13.2M
Comparable Properties
456 Commerce Ave
Charlotte, NC 28202
Sale Price $4.8M
Price/SF $185
Cap Rate 5.6%
Date Sold Jun 2025
789 Business Blvd
Charlotte, NC 28203
Sale Price $5.5M
Price/SF $184
Cap Rate 6.0%
Date Sold May 2025
321 Enterprise St
Charlotte, NC 28204
Sale Price $5.1M
Price/SF $186
Cap Rate 5.9%
Date Sold Jul 2025
Market Analysis
Vacancy Rate 7.8% -0.5% YoY
Avg. Lease Rate $32/SF +3.2% YoY
Absorption 120,000 SF +45,000 SF YoY
Market Cap Rate 5.7% -0.2% YoY
Market Overview
The Charlotte office market continues to show strong recovery in Q3 2025, with decreasing vacancy rates and increasing average lease rates. Investment activity remains robust with cap rates compressing slightly compared to previous quarters. The subject property at 123 Main Street is well-positioned in a submarket with above-average performance metrics and strong tenant demand.
Financial Analysis
Projected Income Statement
| Item | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Potential Gross Income | $1,750,000 | $1,802,500 | $1,856,575 | $1,912,272 | $1,969,640 |
| Vacancy & Credit Loss | ($140,000) | ($126,000) | ($129,960) | ($133,859) | ($137,875) |
| Effective Gross Income | $1,610,000 | $1,676,500 | $1,726,615 | $1,778,413 | $1,831,766 |
| Operating Expenses | ($885,000) | ($911,550) | ($938,897) | ($967,063) | ($996,075) |
| Net Operating Income | $725,000 | $764,950 | $787,719 | $811,350 | $835,691 |
Investment Metrics
IRR (10-Year) 9.4%
Cash on Cash Return 7.2%
Equity Multiple 2.1x
Debt Service Coverage Ratio 1.35
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