What Happens During a Commercial Property Valuation?

Commercial property valuation is often misunderstood. It’s not just about price—it’s about
how buyers think. Understanding valuation helps owners:

Set realistic expectations Position assets correctly Avoid surprises during negotiations

What Buyers Actually Evaluate

Net Operating Income (NOI)
Lease terms
Tenant quality
Market risk
Expense structure
Upside potential

Income vs Price

Unlike residential real estate, commercial value is driven by income, not comps alone.

Small changes in NOI can create large swings in value.

Why Valuations Vary

Different buyers assign value differently based on:

Risk tolerance Hold strategy Capital structure Market outlook

This is why positioning matters as much as numbers.

Final Thoughts

A valuation isn’t a single number—it’s a range shaped by strategy, risk, and execution.

If you want to understand what your commercial property could realistically sell for, a valuation discussion can provide clarity before taking next steps.