what is a quick and rough way to value a commercial property?

Answer 1

Rent per square foot per annum x area of property x 100/ interest rate.
For example
a 20,000 sq ft building, with a rental of £5 per square foot at an interest rate of 5% is worth
20,000 x 5 x 100/5 = £2m

Answer 2

The Comparable Sales Approach is NOT the best determinant of value for commercial properties.

Commercial properties typically use the Income Approach to determine value, which assumes that the income derived from the property will, to a large extent, control the value of that property.

Here's how it works:

Step1: Determine the annual net operating income.

Effective gross income - annual operating expenses = annual net operating income

Step 2: Find out what the capitalization rate is in your particular neighborhood (talk to other investors and/or agents). "Cap rate" is the yield that an investor will demand for this type of property.

Step 3: Apply the cap rate to the annual net operating income to arrive at a value.

Eg, $18,000 income / 8% cap rate = $225,000 value

Answer 3

There are several free sites which will give you the value that a property was last sold for. These values are from the Land Registry records. Alternatively there are estate agent type sites such as http://www.findaproperty.com which list available commercial property and prices.

Answer 4

There is no simple way. Best method is to compare to a similar property.

Answer 5

Guess is the quickest and roughest