Rental estate rental values for veterinary practices

Rental estate rental values for veterinary practices

I retired and sold my practice 15 years ago. I'm wondering if it is still standard to lease at 10 percent to 12 percent to real estate value?
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Jul 01, 2012
By dvm360.com staff

Q: I retired and sold my practice 15 years ago. I'm wondering if it is still standard to lease at 10 percent to 12 percent of real estate value?

"The rates we see in today's reports tend to range from 8 percent to 10 percent because interest rates for real estate mortgages are at historic lows," says Veterinary Economics Editorial Advisory Board member Gary Glassman, CPA, a partner at Burzenski and Co. in New Haven, Conn. "I'm not a real estate appraiser, so I can't quote you a specific rate, but I can tell you that one of the valuation methodologies used by many appraisers
is to capitalize the earning stream of the property by a capitalization rate."

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