Commercial Real Estate

Commercial real estate valuation centers on income analysis—the property's ability to generate returns determines its worth. Cap rates (Net Operating Income / Value) provide the fundamental metric for comparing properties and markets.

Tenant quality and lease terms are primary drivers. A building with investment-grade tenants on long-term leases with rent escalations commands lower cap rates (higher values) than a similar building with shorter leases or weaker tenants. Location remains paramount—class A buildings in prime locations trade at significant premiums.

Our methodology emphasizes income capitalization, referencing market cap rate surveys from major brokerages and comparable transaction data. We analyze tenant credit quality, lease rollover schedules, and capital expenditure needs to arrive at risk-adjusted values.