Commercial real estate covers a wide range of property types. Commercial buildings include hotels, banks, restaurants, offices, retail, industrial, resorts & recreation, institutional, shopping centres and multi-family developments.
Often the function of the property includes a combination of two or more commercial uses; such as a high-rise office building with ground level retail space or hotel with a restaurant.
The purpose of a commercial appraisal or valuation is to provide an opinion of the current market value of the subject property’s unrestricted free hold interest; taking into consideration the highest and best use of the land.
WHAT IS MARKET VALUE?
The scope of the market value appraisal includes a physical inspection of the subject property and discussions with regulatory offices regarding data and factors pertinent to the assignment. This is usually followed by application of the income and a comparative sales analysis in the direct comparison approach. The results of these independent approaches are reconciled to a final estimate of market value.
A commercial appraisal may be required by lenders (banks), lawyers, accountants, corporations, courts, tax officials, realtor’s, property managers, insurance brokers and underwriters as well as any other professional, corporation or individual who requires an impartial and independent estimate of value.
All of our appraisal and consulting reports are completed in compliance with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) which ensures the highest quality or competent, ethical and objective advice.
One commonly cited definition of market value, adopted by the Appraisal Institute of Canada is:
“The most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.”
“Kent-Macpherson has been our family and businesses real estate valuation professionals for over 20 years. Whether at Tallus Ridge, or our many past and current real estate ventures, Kent-Macpherson consistently provides quality and reliable real estate advice we respect and trust.”