Commercial Property Valuation
Office, retail, industrial, mixed-use and specialised commercial property, valued by a valuer who works the asset class. Every commercial job receives a fixed quote before work starts.
Why commercial property is valued differently
Most commercial property is bought for its income. Its value depends as much on the leases as on the bricks: who the tenant is, how much rent they pay, how long the lease has to run, who pays the outgoings, what incentives were given and what happens when the lease ends. Two identical buildings on the same street can be worth very different amounts because one is leased to a strong tenant for ten years and the other is vacant.
That is why commercial valuations are not sold through instant checkout. The scope depends on the property, the number of tenancies and the purpose, so we look at it first and send a fixed quote.
How commercial property is valued
- Capitalisation of income. The net income the property can sustainably earn is capitalised at a rate drawn from comparable sales. It is the most common method for leased investment property.
- Discounted cash flow. Income and costs are projected over a holding period, usually ten years, and discounted back to today. It suits multi-tenant property with uneven lease expiries.
- Direct comparison. Value is analysed on a rate per square metre of building or land from comparable sales. It is often used for owner-occupied and vacant property and to check the other methods.
Most reports use more than one method and reconcile them. How commercial property is valued explains each in more detail.
What we will ask for
- Current leases and any variations
- A tenancy schedule or rent roll
- Outgoings budget and recent actuals
- Building plans and floor areas, if you have them
- Details of recent capital works and anything outstanding, such as essential safety or compliance items
You can upload documents straight from your phone when you request the quote. If something is missing, the valuer will tell you what matters and what does not.
What it is used for
Acquisitions and disposals, restructures between entities, SMSF reporting and business real property transfers, stamp duty and capital gains tax, family law, partnership exits, financial reporting and rent reviews. Tell us the purpose and the report is prepared for it.
We value industrial, retail and specialised property too, each with its own page.
Questions people ask
How much does a commercial property valuation cost?
Commercial valuations start from $1,980 including GST. The fixed quote depends on the size of the property, the number of tenancies, the documents involved and the purpose. You see it before anything is charged.
How quickly will I get a quote?
We aim to send a fixed quote within one business day of receiving the property details. The quote includes the expected timing for the report.
Can I use the valuation for a commercial loan?
Lenders usually order their own valuation from their panel. If the valuation is for finance, ask your lender or broker before you commission one.
Do you value property with a business operating from it?
Yes. For property such as hotels, childcare centres and service stations the valuer will make clear whether the report covers the property alone or the going concern, and whether a separate business valuation is needed.
What is your property worth?
Tell us what you need valued and why. We’ll show you the right valuation and what it costs.