Commercial value depends on the real estate, the income, and the market.
A commercial real estate appraisal is developed for a specific property, intended use, intended user, and effective date. The assignment may require analysis of the site and improvements, comparable sales, market rents, occupancy, expenses, investor expectations, and the property's competitive position.
The relevant evidence changes by property type. A small retail building, owner-occupied industrial property, mixed-use asset, and leased office property do not present the same market or income questions.
Commercial property types considered
Assignment fit is reviewed individually. Property complexity, quality of available records, market data, location, access, deadline, and reporting needs all affect the appropriate scope.
- Neighborhood and freestanding retail properties
- Industrial and flex properties
- Mixed-use and small office buildings
- Owner-occupied and leased commercial real estate
- Other income-producing properties reviewed individually
Documents that help establish the assignment
Useful starting material may include a current rent roll, leases and amendments, operating statements, tax information, building and site plans, surveys, environmental reports, purchase agreements, and a summary of recent capital work.
Early identification of the intended use and available records makes it possible to confirm whether the requested timing and report format are appropriate for the property.