Commercial properties can vary significantly in design, use, income potential, location, and marketability. A professional commercial appraisal provides the research and analysis needed to better understand what a property is worth and support important financial, legal, investment, and real estate decisions.
A commercial real estate appraisal is an independent analysis used to develop an opinion of the value of a commercial property.
Unlike many residential properties, commercial real estate often requires consideration of additional factors such as the property’s current use, zoning, income-producing potential, leases, operating expenses, location, market demand, land value, building characteristics, and the sales of other comparable commercial properties.
Depending on the property and the purpose of the assignment, the appraiser may analyze the property using one or more recognized valuation approaches, including:
Sales Comparison Approach
Income Approach
Cost Approach
The appropriate valuation methods depend on the property type, available market data, and intended use of the appraisal.
Commercial appraisals may be needed for many different reasons.
Whether you are considering purchasing a commercial property or preparing to sell one, an independent appraisal can help you understand the property’s market value before making a major financial decision.
Commercial real estate may need to be valued for estate planning, probate, inheritance, or date-of-death purposes.
When commercial real estate is part of a marital estate, an appraisal may be necessary to establish an independent value for settlement negotiations, mediation, or litigation.
Commercial property may need to be valued when business owners are restructuring a company, dissolving a partnership, buying out another owner, or making other ownership-related decisions.
An appraisal may provide valuation support when a commercial property owner believes the property’s assessed value does not accurately reflect its market value.
Commercial appraisals may be required in connection with bankruptcy proceedings, litigation, asset division, financial disputes, or other legal matters.
Commercial property valuations may also be required in connection with financing, refinancing, or other lending decisions. Requirements can vary depending on the lender and intended use of the appraisal.
Investors may use an appraisal to better understand a property’s value before acquiring, selling, holding, or repositioning a commercial asset.
Commercial real estate includes a wide variety of property types. Depending on the assignment and location, appraisal services may be available for:
Professional offices
Medical offices
Office condominiums
Small office buildings
Owner-occupied office properties
Storefronts
Neighborhood retail
Shopping properties
Stand-alone retail buildings
Restaurant properties
Warehouses
Flex properties
Light industrial buildings
Manufacturing-related properties
Storage and distribution facilities
Apartment buildings
Small multifamily investment properties
Residential income properties with five or more units
Residential and commercial combinations
Retail with apartments
Office and residential combinations
Other mixed-use developments
Commercial land
Development sites
Investment land
Vacant parcels
Proposed commercial development sites
Certain properties do not fit neatly into traditional categories. Commercial appraisal assignments may also involve properties with specialized or unique uses. These assignments are reviewed individually to determine the appropriate scope of work.
Not sure whether your property qualifies? Contact us with the property address and intended purpose of the appraisal.
