Author Archives: TMC-TheMahrCompany

About TMC-TheMahrCompany

Value added Commercial Real Estate Services Based in Tampa, primarily serving Florida markets, TMC-The Mahr Company offers a unique blend of expertise and disciplines. TMC specializes in User and Landlord representation for Office, Commercial, Medical, Legal/Attorney and Investment Properties, as well as: •Acquisitions and Dispositions •Land and Site Selection •Special Projects for Clients

Message from TMC | 4. July. 2015 | Happy Birthday America |


[All Four Stanzas]

TMC Shares |

This comes from a speech by world renowned and famed scientist, science and science fiction writer, professor and mathematician; Dr. Isaac Asimov, who at one time held the title of the most published human being ever.

From Dr. Asimov’s own writing:

” I have a weakness–I am crazy, absolutely nuts, about our National Anthem.

The words are difficult and the tune is almost impossible, but frequently when I’m taking a shower I sing it with as much power and emotion as I can. It shakes me up every time.

I was once asked to speak at a luncheon.  I announced I was going to sing our national anthem–all four stanzas.

I explained the background of the anthem and then sang all four stanzas.

Let me tell you, those people had never heard it before–or had never really listened. I got a standing ovation. But it was not me; it was the anthem.

More recently, while conducting a seminar, I told my students the story of the anthem and sang all four stanzas. Again there was a wild ovation and prolonged applause. And again, it was the anthem and not me.

So now let me tell you how it came to be written:

In 1812, the United States went to war with Great Britain, primarily over freedom of the seas. We were in the right. For two years, we held off the British, even though we were still a rather weak country. Great Britain was in a life and death struggle with Napoleon. In fact, just as the United States declared war, Napoleon marched off to invade Russia. If he won, as everyone expected, he would control Europe, and Great Britain would be isolated. It was no time for her to be involved in an American war.

At first, our seamen proved better than the British. After we won a battle on Lake Erie in 1813, the American commander, Oliver Hazard Perry, sent the message “We have met the enemy and they are ours.” However, the weight of the British navy beat down our ships eventually. New England, hard-hit by a tightening blockade, threatened secession.

Meanwhile, Napoleon was beaten in Russia and in 1814 was forced to abdicate. Great Britain now turned its attention to the United States, launching a three-pronged attack. The northern prong was to come down Lake Champlain toward New York and seize parts of New England. The southern prong was to go up the Mississippi, take New Orleans and paralyze the west. The central prong was to head for the mid-Atlantic states and then attack Baltimore, the greatest port south of New York. If Baltimore was taken, the nation, which still hugged the Atlantic coast, could be split in two. The fate of the United States, then, rested to a large extent on the success or failure of the central prong.

The British reached the American coast, and on August 24, 1814, took Washington, D. C. Then they moved up the Chesapeake Bay toward Baltimore. On September 12, they arrived and found 1000 men in Fort McHenry, whose guns controlled the harbor. If the British wished to take Baltimore, they would have to take the fort.

On one of the British ships was an aged physician, William Beanes, who had been arrested in Maryland and brought along as a prisoner. Francis Scott Key, a lawyer and friend of the physician, had come to the ship to negotiate his release. The British captain was willing, but the two Americans would have to wait. It was now the night of September 13, and the bombardment of Fort McHenry was about to start.

As twilight deepened, Key and Beanes saw the American flag flying over Fort McHenry. Through the night, they heard bombs bursting and saw the red glare of rockets. They knew the fort was resisting and the American flag was still flying. But toward morning the bombardment ceased, and a dread silence fell. Either Fort McHenry had surrendered and the British flag flew above it, or the bombardment had failed and the American flag still flew.

As dawn began to brighten the eastern sky, Key and Beanes stared out at the fort, tyring to see which flag flew over it. He and the physician must have asked each other over and over, “Can you see the flag?”

After it was all finished, Key wrote a four stanza poem telling the events of the night. Called “The Defence of Fort M’Henry,” it was published in newspapers and swept the nation. Someone noted that the words fit an old English tune called “To Anacreon in Heaven” –a difficult melody with an uncomfortably large vocal range. For obvious reasons, Key’s work became known as “The Star Spangled Banner,” and in 1931 Congress declared it the official anthem of the United States.

Now that you know the story, here are the words. Presumably, the old doctor is speaking. This is what he asks Key:

Oh! say, can you see, by the dawn’s early light, W hat so proudly we hailed at the twilight’s last gleaming? Whose broad stripes and bright stars, through the perilous fight, O’er the ramparts we watched were so gallantly streaming?

And the rocket’s red glare, the bombs bursting in air, Gave proof thro’ the night that our flag was still there. Oh! say, does that star-spangled banner yet wave, O’er the land of the free and the home of the brave?

“Ramparts,” in case you don’t know, are the protective walls or other elevations that surround a fort. The first stanza asks a question. The second gives an answer:

On the shore, dimly seen thro’ the mist of the deep, Where the foe’s haughty host in dread silence reposes, What is that which the breeze, o’er the towering steep. As it fitfully blows, half conceals, half discloses?

Now it catches the gleam of the morning’s first beam, In full glory reflected, now shines on the stream ‘Tis the star-spangled banner. Oh! long may it wave O’er the land of the free and the home of the brave!

“The towering steep” is again, the ramparts. The bombardment has failed, and the British can do nothing more but sail away, their mission a failure.

In the third stanza, I feel Key allows himself to gloat over the American triumph. In the aftermath of the bombardment, Key probably was in no mood to act otherwise.

During World War II, when the British were our staunchest allies, this third stanza was not sung. However, I know it, so here it is:

And where is that band who so vauntingly swore That the havoc of war and the battle’s confusion A home and a country should leave us no more? Their blood has washed out their foul footstep’s pollution.

No refuge could save the hireling and slave From the terror of flight, or the gloom of the grave, And the star-spangled banner in triumph doth wave O’er the land of the free and the home of the brave.

The fourth stanza, a pious hope for the future, should be sung more slowly than the other three and with even deeper feeling.

Oh! thus be it ever, when freemen shall stand Between their loved homes and the war’s desolation, Blest with vict’ry and peace, may the Heav’n – rescued land Praise the Pow’r that hath made and preserved us a nation.

Then conquer we must, for our cause is just, And this be our motto–”In God is our trust.” And the star-spangled banner in triumph doth wave O’er the land of the free and the home of the brave.

I hope you will look at the national anthem with new eyes. Listen to it, the next time you have a chance, with new ears. And don’t let them ever take it away.” –Isaac Asimov, March 1991

Did You Know | Your Glass is Half Fillable…………..

GlassWe recently heard the statement | The glass is half fillable | This resonates with us at TMC – The Mahr Company

The statement doesn’t declare the glass as being either half full or half empty | Rather it implies to us that any commercial real estate situation can be further enhanced or improved through | persistent | planned | execution and dedicated action |

TMC- The Mahr Company | our greatest accomplishment is not behind us| it is yet to be| Your goals and commercial real estate needs | whatever they may be | wherever they make take us |whatever they may require | is our commitment to you.


TMC-The Mahr Company| our greatest accomplishment is not behind us| it is yet to be|

TMC The Mahr Company shares with great pride being part of the dynamic Tampa Bay area evidenced yet again by the greatness that our city and region is and is becoming | as our Tampa Bay Lightning prepare for game 1 of The 2015 Stanley Cup Finals ….

Tampa Bay shown with Lightning [#GOBOLTS] 

Tampa Bay Lightening Skyline

[This picture is taken by long exposure of Tampa Bay  by Alex Kratzer]

As we watch the Tampa Bay Lightning score their goals | we will be mindful of our goals| our ongoing commitment to you |

Our greatest accomplishment is not behind us| it is yet to be| Your goals and commercial real estate needs | whatever they may be | wherever they make take us |whatever they may require | is our commitment to you.

TMC | Evaluation | Engagement | Execution | Equates to Excellence

 TMC | Evaluation | Engagement | Execution | Equates to Excellence


“Anyone who’s ever consistently won championships at a high level will tell you that its the groundwork of developing your weaknesses that will get you to the top and keep you there, even more than relying on what you feel you all ready do well. At the top-tier levels, everyone is faster, stronger and more powerful. The champion, the dynasty is the one that chips off a bit more inefficiencies, smooths out the rough edges, gets a little less injured throughout the course and recovers a bit better before the next battle. Train Smarter…” Raphael Ruiz | Axis

TMC- The Mahr Company | Your goals | Your commercial real estate needs | Whatever they may be | Wherever they make take us | Whatever they may require | Is our commitment to you.

As the saying goes Trust but Verify

Difference Between Market Value and Investment Value in Commercial Real Estate

Value is traditionally defined as the power of a good to command other goods or services when exchanged. Within this broad definition of value, there are various types of value given to real property, such as investment value, market value, insurable value, assessed value, liquidation value, or replacement value. In this article we’ll go over different types of real estate value, and then zero in and focus on the difference between investment value and market value, which is often confused by commercial real estate professionals.

Types of Real Estate Value

First of all, let’s briefly go over several common types of commercial real estate value, then we’ll dive into the difference between investment and market value and clarify with an example.

Market Value is what’s typically meant when referring to a property’s value and is the value used for loan underwriting purposes. The Appraisal Foundation has a specific definition for market value as published in the Uniform Standards of Professional Appraisal Practice (USPAP). According to the Appraisal Foundation, market value is the most probable price a property would bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimuli.

Investment Value refers to the value to a specific investor, based on that investor’s requirements, tax rate, and financing.

Insurable Value – This covers the value of the portions of a property that are destructible for the purposes of determining insurance coverage.

Assessed Value – Assessed value is the value determined by the local tax assessor to levy real estate taxes.

Liquidation Value – Liquidation value establishes the likely price that a property would sell for during a forced sale, such as a foreclosure or tax sale. Liquidation value is used when there is a limited window for market exposure or when there are other restrictive sale conditions.

Replacement Value – This is the cost to replace the structure with a substitute structure that is identical or that has the same utility as the original property.

A property can have any of the above types of value at any given time, with no two values necessarily being the same. This is an important point to remember when trying to understand the value of a commercial real estate property. This is especially true when determining market value and investment value.

Approaches to Market Value

Market value is what’s determined by an appraisal. During the commercial loan underwriting process, most lenders will require a third-party appraisal in order to determine a market value estimate, which is then used to find an appropriate loan amount and collateral value.

How do appraisers determine market value? First, before a market value can be estimated by an appraiser, the highest and best use for the property must be determined. The highest and best use is the legal use of a property that yields the highest present value. This process usually begins with evaluating the zoning laws to understand the legally permitted uses for the property.

Once the legally permitted uses are understood, the physically possible uses are then considered, within the bounds of the zoning ordinances. This takes into account the physical limitations of the property such as topography, size, layout, etc.

Finally, the financial feasibility is considered for all of the uses that are legally permissible and physically possible. The financially feasible use that produces the highest financial return is the highest and best use.

Once the highest an best use is determined, the appraiser can then determine market value. Appraisers may use three basic approaches to estimate market value: the sales comparison approach, the cost approach, and the income approach, using either the Direct Capitalization Method or the Discounted Cash Flow Model. We discuss each of these approaches in detail here, but below we’ll briefly summarize.

Sales Comparison Approach
The sales comparison approach links the value of a property to prices that recent buyers have paid for similar properties. In reality no two properties are exactly alike, but this approach can provide a reasonable estimation of value when there is a large quantity of recently sold comparable transactions.

Income Capitalization Approach
The income based approach to market value derives property value from the income it produces. The two methods used to value a property based on income are the direct capitalization method and the discounted cash flow valuation method.

Cost Approach
The cost approach bases value on the cost of reproducing a property, less any accrued depreciation. Accrued depreciation can come from three sources: physical deterioration, functional obsolescence, and external obsolescence. Once the replacement cost is determined and the accrued depreciation is netted out, the cost is added to the value of the land to determined an appropriate value based on cost.

Reconciliation of Value
In a full appraisal the above values are typically reconciled by using a weighted average to determine the final value estimate. For example, it may be determined that a higher weight should be given to the income approach because the available comparable sales data is weak, and as such this would be reflected in the final reconciled market value.

Approaches to Investment Value

While the market value process is usually used in appraisals for loan underwriting purposes, when deciding how much to pay for a property, investors also consider how much a property is worth. Investment value is the amount that an investor would pay for a specific property, given that investor’s investment objectives, including target yield and tax position.

Because investment value depends on an investor’s investment objectives, investment value is unique to the investor. As such, different investors can apply the same valuation methods and still come up with different investment values. Investors can choose from a variety of valuation methods when determining investment value, unlike appraisers who have to adhere to strict procedural guidelines. The following are the most common measures of investment value:

Comparable Sales (Comps) – This is the same sales comparison approach mentioned above that is used by appraisers. Typically investors will compare similar properties on a per square foot or per unit basis.

Gross Rent Multiplier – This is a simple ratio that measures investment value by multiplying the gross rents a property produces in a year by the market based Gross Rent Multiplier (GRM). The gross rent multiplier is usually derived from comparable properties within the same submarket.

Cash on Cash Return – The cash on cash return is another simple ratio used to determine investment value. It’s calculated by taking the first year’s proforma cash flow before tax and dividing it by the total initial investment.

Direct Capitalization – This is the same direct capitalization approach mentioned above that is used by appraisers. Capitalizing the income stream of a property is a very common and simple way to determine both market and investment value for a commercial property.

Discounted Cash Flow – The discounted cash flow model is used to find an internal rate of return, net present value, and a capital accumulation comparison. While the simple ratios above are quick and easy, they do come with several built-in limitation that are solved by a discounted cash flow analysis.

Investment Value vs Market Value

As shown above, market value is essentially the value of a property in an open market and is what’s determined by an appraisal. Investment value, on the other hand, is determined by an individual investor based on that investor’s unique investment criteria and goals.

Let’s take a quick example to illustrate this difference. Suppose an individual investor is contemplating the acquisition of a small apartment building and has projected the following cash flows:

commercial real estate investment valueAs shown above, using the investor’s discount rate of 10%, the property generates a levered NPV of $210,820. This property is under contract with a total purchase price of $1,200,000 but the above analysis implies the investor could pay up to $1,410,820 and still achieve the target yield. Check out the intuition behind IRR and NPV to learn more about how this works.

The above levered analysis assumes that the investor can obtain a $960,000 loan (80% loan to value), amortized over 20 years at 5%. But suppose that during the underwriting process the bank orders a third-party appraisal and it comes in at $1,000,000 rather than the $1,200,000 the investor is paying. This also reduces the supportable loan amount to $800,000 (based on an 80% LTV) rather than the anticipated $960,000. Unfortunately, in this scenario it turns out that the seller refuses to sell for less than $1,200,000. In other words, this is an above market transaction where the investment value is higher than the market value. Does it still make sense to do the deal?

Let’s take a look at what the new cash flows look like to the investor in this new loan scenario:

investment vs market value

As shown above the new loan amount reduces the yield to 16% from 22%. But this still exceeds the investor’s required return of 10%. So, does it make sense to do the deal? As always, it depends.

In most cases the investment value and the market value should be approximately equal, but sometimes these two values will diverge. On the one hand investment value can be higher than market value. This can happen when the value to a particular buyer is higher than the value to an average, well-informed buyer. For example, this might be the case when a company expands to a new building for sale across the street, paying more than market value in order to keep competitors out of the sub-market. The additional value over and above the market value provides a strategic advantage and therefore might be justified. In the case of an investor, investment value could sometimes be higher than market value due to favorable financing terms or tax treatment that is non-transferable.

On the other hand, investment value can be lower than market value. This might be the case if the particular asset class in question is not a property type that you specialize in. For example, if you are primarily a multifamily developer, then decide to evaluate a site for possible hotel development, your internal investment value may be less than the market value due to the steeper learning curve costs involved. Additionally, investment value could be lower than market value if you require an above-average return based on your existing portfolio mix. In these cases it can sometimes be tempting to pursue a deal even though investment value is less than market value. In these cases think carefully before getting distracted by something that might not make sense.


The safest policy is of course to make sure a transaction makes sense both from an investment value perspective as well as a market value perspective. Keep in mind that investment value is much more subjective than market value, and as such it can be abused. To avoid falling victim to investment value abuse, it’s best to always estimate market value whenever a relevant market exists.  Be especially skeptical if someone claims that investment value differs from market value in a way that supports his or her sales pitch. They might be right, but as the saying goes, trust but verify.

At TMC- The Mahr Company | We do things differently |The power of our “12”

At TMC- The Mahr Company | We do things differently | The “12”

Good Morning Today

“12 things successful people do differently”

Remarkable People Banner(1)

#1  They create and pursue focused goals.

#2  They take decisive and immediate action.

#3  They focus on Being productive, not being busy.

#4  They make logical, informed decisions.

#5. They avoid the trap of trying to make things perfect.

#6  They work outside of their comfort zone.

#7  They keep things simple.

#8  They focus on making small, continuous improvements.

#9  They measure and track their progress.

#10  They maintain a positive attitude as they learn from mistakes.

#11  They spend time with motivational people.

#12  They maintain balance in their life.

TMC-The Mahr Company | Excellence| Service| Commitment| Dedication| Your Goals = Our Goals

This is Tampa Bay Today | What Does Tomorrow Look Like?

Tampa Bay Skyline

Tampa Bay as it looks today from the perspective of the CBD in Tampa. Tampa Bay is comprised of a trilogy of major CBD’s [ Tampa | St. Petersburg | Clearwater ].

What will it look like tomorrow ? How will you and your business or profession take advantage of the evolution of this great area to live, work and play?

TMC-The Mahr Company can assist you in positioning your business | profession | portfolio to take advantage of the emerging trends…..

TMC – The Mahr Company | Excellence | Service | Commitment | Dedication | Your Goals = Our Goals 

Among our Services: Office | Medical | Business | and select Retail Space Leasing

  Among our Services: Office  | Medical | Business | and select Retail Space Leasing

TMC The Mahr Company Leasing

TMC – The Mahr Company Excellence | Service | Commitment | Dedication | Your Goals = Our Goals 

The Year 2015 for TMC The Mahr Company yet another year of Excellence | Service | Commitment | Dedication | Your Goals = Our Goals |


The Year 2015 for TMC – The Mahr Company yet another year of Excellence | Service | Commitment | Dedication | Your Goals = Our Goals |