Bracketing Comparables: Storytelling

Bracketing involves selecting a set of comparable sales or rents that surround the subject property in terms of key valuation metrics such as size, quality, and location.  These comps will offer inferior, similar, or superior features compared to subject property. 

Example:

We are valuing a 5,085 square foot concrete tilt-up industrial building built in 1979.  It’s on a 20,250 SF site, with a 3.98 land-to-building ratio, 18-foot clear height, 1 dock-high loading and 2 grade-level loading doors. 

We found recently sold comps located nearby the subject property.  Comp 1 sold at $416/SF and is inferior to the subject property when comparing year built, land-to-building ratio, clear height, and loading capacity.  Comp 2 sold at $485/SF and represents the comparable with similar physical characteristics relative to subject property.  Comp 3 sold at $530/SF and is superior to the subject property when comparing year built, land-to-building ratio, and clear height. 

The story here – we are higher than Comp 1, somewhere around Comp 2, and lower than Comp 3. 

By framing the property between higher and lower comparables and also providing a similar comparable in the middle, we are creating a clear, data-backed narrative that explains where the subject stands in the market.

This all ties into storytelling, which is critical in commercial real estate – not just in valuation but across the industry.  Whether you’re pitching a deal, negotiating terms, or presenting a valuation, a compelling story gets everyone on the same page.