Property record
Use, physical attributes, condition, access, configuration, location, zoning information where relevant, and known capital requirements.
Broker opinion of value
Broker opinions of value for commercial property.
A broker opinion of value provides a market-based view of a property before a potential sale, hold, refinancing discussion, or asset strategy decision. The work considers the property, income and tenancy, relevant sales, competing offerings, and current market conditions.
The value lenses
Review the property through four valuation lenses.
Property characteristics, income, market evidence, and sale execution each affect the conclusion. No single comparable, capitalization rate, or asking price should determine the opinion by itself.
What is the market being asked to price?
Read the asset’s use, scale, quality, condition, configuration, location, access, tenancy, deferred work, and other characteristics that affect marketability or comparison.
- Physical position
- Use, quality, condition, layout, access, and improvements.
- Property constraints
- Known capital, functional, legal, or diligence considerations.
- Competitive set
- Properties with relevant similarities and material differences.
- Information limits
- Facts confirmed, information provided, and assumptions required.
How reliable and durable is the property’s income position?
Review available rent, occupancy, lease structure, recoveries, expenses, rollover, credit, downtime, leasing costs, and capital requirements relevant to a buyer’s underwriting.
- Current income
- Occupancy, rent, recoveries, and operating information.
- Lease exposure
- Rollover, options, credit, downtime, and leasing obligations.
- Capital needs
- Known improvements, reserves, and near-term property work.
- Underwriting context
- Assumptions a market participant may apply to the property.
Which transactions and current alternatives are genuinely comparable?
Consider asset type, geography, scale, quality, tenancy, income profile, condition, timing, transaction circumstances, and market changes when selecting and reconciling evidence.
- Sales evidence
- Relevant closed transactions and known transaction circumstances.
- Current offerings
- Competing assets and available alternatives in the market.
- Leasing conditions
- Demand, availability, rent, concessions, and tenant competition.
- Capital conditions
- Buyer requirements, financing environment, and liquidity.
How could the property meet the market?
Connect the opinion to likely buyer profiles, positioning, property preparation, due diligence, timing, information requirements, and risks that could influence a sale process.
- Buyer field
- Potential market participants appropriate to the asset and position.
- Preparation
- Information, diligence, leasing, or physical work that may affect execution.
- Marketability
- Property attributes, constraints, and narrative relevant to outreach.
- Timing
- Decision dates, preparation period, market window, and closing considerations.
The evidence dossier
Build the opinion from verifiable property and market evidence.
The opinion should identify the information reviewed, explain why the selected evidence is relevant, disclose material assumptions, and address the characteristics that distinguish the subject property from the market record.
Evidence before conclusion
The report should make the pricing logic clear.
The analysis begins with the property and its income profile, then considers comparable sales, current listings, leasing conditions, buyer demand, capital-market conditions, and the intended use of the opinion.
Evidence ledger
Income and tenancy
Rent roll, lease terms, occupancy, recoveries, operating information, rollover, and credit considerations as available.
Market evidence
Relevant sales, offerings, leasing conditions, competing properties, buyer demand, and transaction circumstances.
Execution context
Purpose, likely buyer profile, marketability, due diligence issues, assumptions, timing, and property-specific constraints.
Regional value context
Comparable evidence is local and asset-specific.
Connect the property to the geography and property type that shape the most relevant competitive and transaction evidence.
The professional boundary
A broker opinion of value is not an appraisal.
A broker opinion of value provides a broker’s view of market position and potential sale execution based on the agreed scope and available information. When a formal appraisal is required, the assignment should be completed by an appropriately qualified appraiser.
Market position and potential execution
Commonly used to inform early planning, sale or hold discussions, asset strategy, market positioning, or other brokerage-related decisions based on the agreed scope and information available.
Formal valuation for an identified use
Prepared by an appropriately qualified appraiser under the standards and requirements applicable to the assignment, intended use, users, property interest, and jurisdiction.
What the value view starts
Use the valuation conclusion to evaluate hold, refinance, leasing, or sale options.
DispositionInvestment Sales
Position the property and execute a market sale process.
↗AssetAsset StrategyCompare hold, improve, lease, reposition, financing, and transaction paths.
↗EvidenceComparable AnalysisExamine the transactions and offerings relevant to the property.
↗MarketSupply & DemandRead competitive supply and demand conditions around the asset.
↗Broker opinion of value
What value range does current property and market evidence support?
Begin with the purpose, property record, effective date, timing, and information available for review.