Initial Property Value Estimate

Step By Step

Through the Appeal Process

Initial Perliminary Estimate

If you believe that your commercial property is over-assessed, let me complete an initial value estimate. For my exitmate I would need to identify the subject property with an address and/or the block and lot. If the property is rented a current rent roll and a list of annual expenses is necessary. Properties with no tenants only the building owner operating a business should submit a list of expenses. Along with the annual rent the size of each tenant space will give us the rent per square foot (SqFt). Typically, the tax assessor will require a copy of your income & expenses.

Properties may have multiple tenants with the property owner using part of the building. When I have have the financial data I will compare other rents and expenses in the market and verify if your income & expenses are at market. The comparison is accomplished by comparing rents and expenses on a per square foot basis.

Although, a detail appraisal of a commercial property includes a Sales Comparison, most properties are valued on the Income produced. The final step to estimate income value is to apply a Capitalization Rate (Cap Rate) to the Net Operating Income, thats the difference between the annual income and expenses. There are several ways to choose a appropiate Cap Rate. We’ll explore various methods on the next Step.