THE PERSPECTIVE
A comparable sale is useful because it helps explain the subject property, not simply because it is nearby. A building of similar size may differ in occupancy, physical condition, rights conveyed, or transaction structure. Those differences can be more important than the apparent similarity. The research task is to understand the relationship between the evidence and the subject before turning either into a pricing conclusion.
Begin with the subject and the question
Define the property interest, valuation context, date, and physical position before searching. A stabilized investment, vacant building, and redevelopment opportunity call for different comparison logic. Write down the characteristics that make a candidate relevant and the differences that would make it misleading. The criteria should guide the search rather than be reverse-engineered to justify the results.
Understand what actually changed hands
Investigate whether the reported price covers a single asset, an assemblage, a portfolio, or a partial interest. Review the timing and evidence supporting consideration. A portfolio allocation is not automatically a separately negotiated property price. Where terms are incomplete, preserve the uncertainty rather than filling the gap with a convenient assumption.
Explain the economics behind the physical comparison
Occupancy, remaining lease commitments, capital needs, and transaction conditions can shape price. Compare those attributes where reliable evidence is available. If income definitions differ, a cap-rate comparison may be less meaningful than it appears. A useful record tells the reviewer what is known about the economics and what has not been established.
Keep the excluded candidates
A transparent selection process records why attractive-looking observations were rejected. The exclusion can reveal a critical difference in deal scope, quality, or date. A report does not need to reproduce every candidate, but the research file should support the final set. The quality of the argument depends on the selection logic as much as the number of rows in a table.
Keep the argument connected to its origin
Return to the originating sale instrument before trusting a calculated price per square foot. Check whether the consideration covers one asset or several and whether the area uses the same property scope. A comparison table should preserve those inputs alongside its exclusions so another analyst can reproduce the arithmetic.
PUT THE FRAMEWORK TO WORK
Define the subject before selecting evidence.
Check deal scope, timing, and source support.
Evaluate economic and physical differences.
Document inclusion, exclusion, and uncertainty.
GO A LEVEL DEEPER
Questions worth asking.
What is the essential takeaway?+
A comparable is a reasoned relationship between a transaction and the subject. Proximity and similar size are screening criteria, not the conclusion.
