CRE Valuation
Know what your property is worth before you act. Broker opinion of value, comp analysis, and market positioning.
Quick Answer
A CRE valuation determines what a commercial property is worth using three approaches: income capitalization, comparable sales, and replacement cost. According to the Appraisal Institute, the income approach is most relevant for investment properties because it values the building based on its ability to generate income — directly tied to the capitalization rate and net operating income.
Accurate Valuation Drives Better Decisions
With 23+ years of real estate experience, Barrett Henry delivers valuations backed by market data and institutional-level analysis. Before you sell, refinance, negotiate a lease renewal, or restructure a partnership, you need to know what your commercial property is actually worth. Not what you hope it is worth. Not what Zestimate says. What a sophisticated buyer or lender would pay based on income, comps, and market conditions.
Barrett provides broker opinions of value (BOVs) that give you a defensible market value range. His analysis considers three approaches: comparable sales, income capitalization, and replacement cost. He weights each approach based on what matters most for your specific property type and situation. For NNN-leased investment properties, the income approach almost always drives value. For industrial and warehouse properties, recent comparable sales carry significant weight.
A BOV is not a formal appraisal — it is a broker-level assessment based on real market data and professional judgment. It is faster, more affordable, and often more practically useful than a full appraisal. Banks, attorneys, and estate planners regularly request BOVs for decision-making.
Whether you own a single retail pad or a multi-property portfolio, Barrett delivers clear, well-supported valuations that help you make confident decisions.
Barrett uses CoStar data, recent comparables, and income analysis to produce defensible valuations for all commercial property types across Florida.
Who This Is For
- ✓Property owners considering a sale or refinance
- ✓Investors evaluating acquisition targets
- ✓Lenders needing third-party value confirmation
- ✓Estate planners and trustees managing commercial assets
- ✓Partners in ownership disputes needing fair market value
- ✓Business owners assessing real property holdings
What a BOV Includes
- ✓Property description, photos, and site analysis
- ✓Comparable sales analysis with adjustments
- ✓Income approach using actual or market rents and cap rates
- ✓Market conditions summary and trend analysis
- ✓Estimated value range with supporting rationale
- ✓Executive summary suitable for lenders and attorneys
For sellers preparing to list, a BOV feeds directly into Barrett's disposition strategy. For investors evaluating acquisitions, it anchors the due diligence process. The cap rate calculator on this site lets you run quick checks before requesting a full BOV.
Barrett delivers valuations for properties in Hillsborough, Sarasota, Pasco, and all 67 Florida counties.
Need to Know Your Property's Value?
Request a broker opinion of value. Barrett will assess your property and deliver a clear, well-supported valuation.
How Do CRE Valuation Approaches Compare?
According to the Appraisal Institute, each valuation approach serves a different purpose. Barrett uses all three and weights them appropriately for your property type and situation.
| Approach | Method | Best For |
|---|---|---|
| Income Capitalization | NOI divided by cap rate | Income-producing properties (most CRE) |
| Comparable Sales | Price per SF based on recent similar sales | Properties with active comp markets |
| Cost Approach | Land value + replacement cost minus depreciation | New construction, special-purpose buildings |
Whether you are a first-time investor or managing a portfolio, understanding your property's value is the foundation of every smart decision. Learn how to value commercial property in detail.
CRE Valuation — Frequently Asked Questions
What is the difference between a BOV and an appraisal?
A broker opinion of value (BOV) is a broker-level market assessment based on comparable sales, income analysis, and professional judgment. A formal appraisal is conducted by a licensed appraiser under USPAP standards and is required by lenders for financing. BOVs are faster, more affordable, and often more practically useful for decision-making.
How much does a commercial property valuation cost?
BOV pricing varies by property complexity. Simple single-tenant properties may cost $500 to $1,500. Multi-tenant or complex properties may run $1,500 to $3,500. Formal appraisals typically cost $3,000 to $10,000+. Barrett provides transparent pricing before starting.
Which valuation approach is most important for CRE?
For income-producing properties, the income capitalization approach is most important — it values the property based on NOI and cap rate. The comparable sales approach validates the number. The cost approach is used primarily for special-purpose or newer properties.
How often should I get my commercial property valued?
At minimum, before any major financial decision — sale, refinance, partnership change, or estate planning. Barrett recommends annual valuations for active investors and whenever market conditions shift significantly.
Can a BOV be used for financing?
Most lenders require a formal appraisal for loan origination. However, BOVs are widely accepted for preliminary decision-making, internal portfolio valuation, estate planning, partnership buyouts, and market positioning before listing.
How does Barrett calculate cap rates in his valuations?
Barrett pulls recent comparable sales from CoStar and his own transaction database, extracts the implied cap rate from each comp, and weights those rates based on similarity to your property — location, lease term, tenant credit, and building condition. He then applies market-derived cap rates to your actual or market NOI to produce a defensible value range. For a deeper explanation, see the cap rate guide on this site.
Sources
- Appraisal Institute — The Appraisal of Real Estate, 15th Edition
- Uniform Standards of Professional Appraisal Practice (USPAP)
- National Association of REALTORS — CRE Valuation Guidelines
- CoStar Group — Florida Commercial Property Data and Analytics
Last updated: July 2026