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Costar Building Rating System

The CoStar Building Rating SystemSM provides a national rating for commercial buildings. Properties are evaluated and rated using a universally recognized 5 Star scale based on the characteristics of each property type, including: architectural attributes, structural and systems specifications, amenities, site and landscaping treatments, third party certifications and detailed property type specifics. The extensive, standardized property information collected by CoStar Research makes such a national building rating system possible.

This structure allows CoStar to actively and continuously preserve the timeliness and consistency of building ratings as an integrated function of CoStar Research, through a centrally managed process which ensures an up-to-date reflection of commercial real estate activity.

What is the Building Rating System?

The CoStar Building Rating SystemSM provides a national rating for commercial buildings. This system rates all property types on detailed definitions and criteria, and provides greater comparability of property assets across markets.

Until this point, the industry has lacked a consistent and centrally managed system for classifying buildings. CoStar researches all commercial properties across the US and UK, and this demands a system that accurately reflects the full spectrum of building quality across each country through a centrally managed process.Back to Top

How do you come up with a rating?

Through a series of mechanisms, CoStar compares the details of a property against a set of definitions that describe expected levels of quality for each rating, within each property type.

These mechanisms include:

  • CoStar Research – Researchers examine building specifications, images, brochures, and floor plans to ensure that building ratings are consistent. Field Researchers are located across the entire US and UK conducting site inspections and grading various aspects of a property.
  • Rating Models – Analyses on property and market level data are used to support the determination of a building rating.
  • Analytic Quality Assurance – Building ratings are continuously reviewed through a series of checks for inconsistences with respect to aggregated rating trends, as well as the ongoing integration of up-to-date property information.
  • Market Advisors – CoStar engages industry professionals though local advisory meetings to gather input on the rating system, confirm individual ratings and collect first-hand knowledge on specific buildings.Back to Top

Does this replace the Class A, B and C System?

The Building Rating System differs from the A, B, and C classifications which are predominately local indicators of quality within a particular market. A CoStar Building Rating is intended to be comparable between markets and to be consistent nationally.Back to Top

Location is not a factor?

The Building Rating System focuses on the quality of the physical attributes of the property, independent of the location. This addresses that fact that a diversity of construction quality exists at any specific location. Retail properties are unique in that the location is a factor because of its effect on retail productivity.Back to Top

Can a building rating be adjusted?

Providing CoStar with the most complete property level information is always the best way to ensure that building ratings are consistent with our definitions. We welcome feedback on ratings to help us with the continuous refinement of ratings over time. Incorporating additional building information and feedback from individuals with knowledge of the properties may result in rating adjustments. Please send feedback to our dedicated building rating team at stars@costar.com.Back to Top

Can I remove the rating?

We are committed to rating all properties.Back to Top

Why does an almost identical building have different rating?

The Building Rating System is a continuous initiative and adjustments to ensure consistency are always taking place.Back to Top

I have a question about a particular rating?

To contact the Building Rating team at CoStar directly, please email stars@costar.com with the details of the property and we will get back to you.

Can I get more information?

For more information about our Building Rating System, including our legal notices and disclaimer, full documentation is available here: https://www.costar.com/docs/default-source/brs-lib/costar_buildingratingsystem-definition.pdf?sfvrsn=12a507a4_2

Hard Money Lenders

A hard money loan is a loan backed by a “hard” asset, a tangible property that produces a profit to pay the loan faster. Typically used in “Fix and Flip” projects. With a hard money loan, you finance acquisition and renovation costs, which reduces out of pocket expense.

Hard money loans close quickly and have less qualification requirements than conventional loans. These factors allow investors to compete for deals, retain needed capital, and maximize return.

Common Loan Fees*:

12% – 14% interest only payments 3 to 5 points origination (depends on location) Appraisal Fee: $425 – $550 (dependent upon location and independent appraiser’s fee) Inspection Fee: $100 – $400/ inspection Loan Documents: $475 Loan Admin Fee: $500 Credit Report Fee: $40 ($45 for Joint) Flood Certificate Fee: $15 Monthly Servicing Fee: $15

Common Loan Terms*:

A mortgagee’s title policy is required. An insurance policy is required on all loans for the term of the loan. Up to 70% of the After Repaired Value (excluding points & fees), not to exceed 100% of cost. 6 month term 3 month optional extension (extension fees may apply) 

 

*The above terms are for discussion purposes only. Actual terms are subject to market conditions and credit approval.