Jackson Hole Commercial Property and Real Estate Information

Commercial Property Investments in Jackson Hole

Business/ Office/ Hotels /Motels - Broker Comments

Commercial property real estate in Jackson Hole is a great opportunity if the investment is managed well has good estimated debt coverage ratio and produces an accumulated depreciation for the investor. The appreciation of buildings and land with commercial investments in good locations has produced huge returns on investment for our commercial clients. We recommend a small hotel or motel property that are located within good proximity to the town of Jackson Hole.

A few of the properties one of our investment teams purchased since 2001 were in trouble. These properties are prime to be bought them at a reduced valuation. Commercial property managed well is worth a fair price if the revenue is in good shape. We also specialize in managing commercial investments in Jackson Hole. A properly managed lodging property will have good repeat customers. On the other hand, poorly managed properties may take a few years to get back in good shape financially but a buyer will most likely pay less up front to acquire them.

Our Real Estate Broker has taken time to answer the most frequently asked questions on Commercial Real Estate in Jackson Hole:

Questions and Answers by Ronald Miller.

1. How do you handle managing and make repairs on a commercial property

Answer: Find a property that has a good manager in place, if possible. These people have previous experience with the commercial operation and have good sub-contractors on call. Find a good team of repair people and let them deal with problems. Have the manager or repairman call you if the expense is greater than $200.00.

2. How do you collect rent revenue and pay the owner

Answer: A good manager and bookkeeper can usually do both. Collect all deposits and rental monies through a credit card machine that sends the money to your account. Create daily reports on all your properties and have an accountant reconcile all revenue and expenses monthly.

3. How is the marketing done to increase revenue?

Answer: A strategic plan is needed here to allocate funds as needed to boost occupancy. This is where a commercial lodging investor wins in Jackson Hole. From an appraisal standpoint, the income approach rewards or penalizes you as an investor if you do well in this area. Jackson Hole Ski Packages and great relationships in the community creates good will for the property and brings back return customers.

4.How does a commercial property owner get good employees?

Answer: Learn the needs of each employee and have your manager report to you on how you can motivate people to stay on board for the long haul. Employees may take advantage of an owner if this attention is not conveyed properly. A smart owner will occasionally sit with each employee and discuss with them that things may need to change but it will not change immediately. Adjust pay as needed and let employees know you run a business well and expect top performance for your generosity.

5. On a lodging property, what is a good Return on investment and what cap rate is normal?

Answer: if an owner can increase occupancy steadily, the investment should run at about a 50-60% expense of gross revenue before mortgage. We have seen efficient operations come in as low as 50% which is a good target to aim for. If a lodging property can offset expenses by operating another business from the same location it is wise. A good cap rate is 7% on these investments. While this seems lower than normal investment opportunities, the appreciation of a property in Jackson Hole usually makes up for the difference in the long haul.