Determining the Value of a Commercial Real Estate Property

Regardless if you’re ready to evaluate a new commercial property for your small business or seeking the current value of one you already own, establishing commercial property value can be complicated

When determining commercial property value, you should be prepared to take into account the difference between real property and business personal property.

Commercial Real Estate Appraisal: What are the Differences?



• Real property is land and the permanent things on it, like buildings, outdoor fixtures, permanent machinery and equipment
• Business personal property is all other property that’s not classified as real property and can be easily moved, such as computers, telephones and office furniture

Knowing the distinction is important because each type of property is beholden to different tax rules. 

It also helps you define the assets that are included with the property long-term. Both of those factors affect the value of the overall property.

Business Valuations are usually critical for sale, transition, and business planning.

Commercial Real Estate Property Appraisal: What are the Key Factors?

1. Construction costs: The actual costs to build anything on the property
2. Market trends: The overall condition of the city, state or national real estate market
3. Physical condition: The upkeep of the property and any buildings on it
4. Market availability: The number of similar properties available in your local market

While it is very possible to calculate the value of your small business’s property on your own, you can also work with a local commercial real estate appraiser to verify your property’s value.

Real Estate Matrix is one of the Southeast’s premier commercial valuation firms and has participated in the valuation of billions of dollars in real commercial property assets.

We would appreciate the opportunity to add you to our very long list of pleased clients.

You can give us a call or click here to fill out our Free Quote Appraisal Form.