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What is a commercial property appraisal?
A commercial appraisal is a professional opinion of the market value of a commercial property, such as office buildings, retail spaces, industrial facilities, multi-family residential complexes and more.
What is Market Value?
Market Value is the price that a property is expected to sell for on the open market, under normal conditions, and with both the buyer and seller acting in their own best interests. It represents the amount a willing buyer would pay to a willing seller, assuming neither is under duress to buy or sell.
What if I have questions about my appraisal?
Our professional appraisers are available to walk you through the appraisal process and answer any questions you may have after receiving the report. We are here to help you understand how the value/conclusions were derived.
How long will my appraisal/consulting report take?
The time it takes to complete an appraisal report or consulting assignment can vary. Generally, you can expect your report to be completed somewhere within the range of 2 to 6 weeks. Timing can depend on the amount of work already in the schedule and/or the complexity of the assignment. You will be provided with a timing estimate specific to your file when requesting a quote/proposal.
A commercial property valuation involves defining the scope of work, inspecting the property, and conducting market research. The appraiser analyzes data on comparable properties and uses valuation approaches such as the Direct Comparison, Cost, and Income. After reconciling these values, the appraiser prepares a detailed report, reviews it for accuracy, and delivers it to the client. This thorough process ensures an accurate assessment tailored to the property's specific needs.
How is a commercial property appraisal completed?
What are the approaches to value?
In a commercial property appraisal, there are three primary approaches to determine value: Direct Comparison Approach: This method compares the subject property to similar properties that have recently sold in the same market. Adjustments are made for differences between the properties to arrive at a value estimate. This approach is most effective when there is a sufficient number of comparable sales. Cost Approach: This approach estimates the cost to replace or reproduce the property, accounting for depreciation. It involves calculating the land value and the cost of constructing the building and improvements. The total cost is then adjusted for physical deterioration, functional obsolescence, and economic obsolescence. This method is particularly useful for new or unique properties with limited comparable sales. Income Approach: This method values the property based on its potential to generate income. It involves analyzing the property's income stream, such as rental income, and applying an appropriate capitalization rate to convert the income into a value estimate. This approach is commonly used for income-producing properties like office buildings, shopping centers, and apartment complexes. Each approach has its strengths and is used depending on the nature of the property and the availability of data
What is the AACI Appraisal Designation?
AACI (Accredited Appraiser Canadian Institute) designated appraisers are qualified to appraise a variety of properties, including residential homes, commercial buildings, and special use sites like intensive livestock operations, hotels and golf courses. Their extensive training and experience enable them to handle diverse and complex property types. An AACI (Accredited Appraiser Canadian Institute) designated appraiser must have a Canadian or equivalent international university degree and complete specific courses at the University of British Columbia's Sauder School of Business. They must also participate in the AIC Introduction to Professional Practice Seminar, gain at least two years of practical experience through the Applied Experience Program, complete guided case studies, and pass the AACI Applied Experience Exam. Candidates must become a Candidate Member of the AIC and actively work in the profession while completing their education and experience requirements.
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