What is your commercial property worth?
A broker opinion of value grounded in real comparables, income analysis, and current market positioning, for owners weighing a sale, a refinancing, or simply testing where the market sits. Across Ontario and Alberta.
How is commercial property valued?
Commercial property is valued on the income it produces, on what comparable properties have actually sold for, and on what it would cost to replace. For a building bought for its rent, the income approach leads: net operating income divided by the cap rate buyers are paying for that asset type and location. Comparable sales test that number, and the cost and residual methods matter most for special-purpose buildings and development land.
Income approach
Value equals net operating income divided by a capitalization rate. The cap rate is the yield buyers are currently accepting for that asset type, location and lease quality. It leads for any building bought for its rent.
Direct comparison
Value is read from what similar properties actually sold for, per square foot or per acre, adjusted for size, age, condition, location and use. It leads for owner-occupied buildings, vacant buildings and land.
Cost approach
Value equals land value plus the cost to build the improvements today, less depreciation. It matters for new construction and special-purpose buildings that rarely trade, such as cold storage or data centres.
Residual land method
For development land, value is what a builder can pay for the site after the completed project’s value, construction costs, fees and profit are accounted for. Zoning, density and servicing drive the answer.
Every asset class. One disciplined method.
Industrial & Land
Warehouses, manufacturing, and development parcels priced against live comparables. Clear height, loading, trailer parking, power and zoning move the price per square foot; for land, servicing and permitted density.
Retail & Office
Storefronts, plazas, and office assets positioned to current tenant demand. Tenant covenant, remaining lease term and in-place rent against market rent carry most of the value.
Income Properties
Multi-tenant and investment assets valued on income and cap-rate analysis. Lease rollover over the next three to five years and how much of the operating cost is recoverable decide the cap rate a buyer will accept.
Specialty Assets
Data center, healthcare, cold-chain, and infrastructure-adjacent property. Power capacity, temperature-controlled build-out, licensing and operator credit are factors generic comparables miss.
How we arrive at a defensible number.
- 01
Comparable sales analysis
We pull recent transactions in the relevant submarket (what actually traded, not asking prices) and adjust for size, condition, location, and use. Real comparables are the foundation of a defensible opinion of value.
- 02
Income and cap-rate approach
For income-producing assets, we model in-place and market rents, operating expenses, and the cap rate the submarket is currently supporting. The income approach often tells a different story than comparables alone, and the gap is where pricing decisions are made.
- 03
Market positioning
We assess where the asset sits against current demand: who the likely buyers are, how absorption is trending, and what is competing for the same capital right now. Value is not just a number; it is a number in a market moving at a certain speed.
- 04
Written opinion of value
You receive a clear, written broker opinion of value: a defensible range with the reasoning, comparables, and assumptions behind it. Enough to make an informed decision about listing, pricing, refinancing, or holding.
What does a cap rate do to price?
A half-point change in the cap rate moves the value of an income property by roughly 8%. On the building here, that is more than $400,000, from nothing but a shift in what buyers will accept.
Illustrative figures, not a market quote
A broker opinion of value is not a certified appraisal.
A broker opinion of value is a pricing analysis based on our market knowledge and comparable data, intended to help you make informed decisions about listing, pricing, refinancing, or holding. It is not a certified appraisal and is not a substitute for one. Where a formal appraisal is required (for lending, litigation, tax, or financial reporting) we coordinate with accredited (AACI) appraisers to ensure you have the right instrument for the purpose.
Held in confidence.
Commercial property valuation, answered.
What is a broker opinion of value?
A broker opinion of value (BOV) is a written estimate of what a property would sell or lease for in the current market, prepared by a licensed commercial real estate broker from recent comparable sales, the property’s income and current buyer demand. Owners use it to decide whether to sell, how to price a listing, whether to refinance or whether to hold.
Is a broker opinion of value the same as an appraisal?
No. A certified appraisal is prepared by an accredited appraiser (AACI) in compliance with the standards of the Appraisal Institute of Canada, and it is what lenders, courts, auditors and tax authorities require. A broker opinion of value is a market pricing analysis for decision-making. Where a formal appraisal is needed, we coordinate with an accredited appraiser.
How much does a commercial property valuation cost?
It depends on which one you need. A broker opinion of value may be free, or carry a modest fee that is credited back against the commission if we go on to sell or lease the property. A certified appraisal report, usually required for financing, is prepared by an accredited appraiser under Appraisal Institute of Canada standards and typically costs several thousand dollars depending on the property. We have strong relationships with leading appraisers and can arrange one when it is needed.
What is a cap rate, and how does it affect value?
A capitalization rate is a property’s net operating income divided by its price, which is the first-year yield a buyer receives. Value moves inversely to it: on a property earning $310,400 a year, a 5.75% cap rate implies about $5.4 million and a 6.25% cap rate about $5.0 million. A half-point change moves value by roughly 8%, which is why the cap rate is the most negotiated number in a sale.
What information is needed to value a commercial property?
For an income property: the rent roll, copies of the leases, two to three years of operating statements, and the property tax bill. For any building: size, site area, age, clear height and loading for industrial, the condition of the roof and mechanical systems, zoning, and any environmental reports. The more complete the file, the narrower and more defensible the range.
How is commercial land valued?
Commercial and industrial land is usually valued by direct comparison with recent land sales, per acre or per buildable square foot, and cross-checked with the residual method for development sites. Zoning, permitted density, municipal servicing, access and environmental condition account for most of the difference between two sites in the same area.
How is a vacant or owner-occupied building valued?
With no lease in place, the building is valued by direct comparison with similar sales, and by imputing the market rent it could achieve and capitalizing that. For a vacant building, the cost and time to lease it up, including rent-free periods, tenant improvements and commissions, are deducted from the stabilized value.
Is my information kept confidential?
Yes. Valuations are delivered privately, the property is not marketed, and nothing you share is disclosed to buyers or other parties without your instruction.
Curious what your property would bring? Let's find out.
Tell us about the asset and we’ll prepare a broker opinion of value: comparables, income analysis, and a defensible range. No obligation.