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office building value calculation Help needed

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bdvinc

Thread Starter
Freshman Member
Joined
Dec 9, 2007
Professional Status
General Public
State
Texas
I have a small professional office buidling that I would like to know an approx. value of. I am not selling it for for a few years. Is there a formula for the actual value of the building & then a separate one for the business value (100% leased up). The building is 18000 sq. ft with lease spaces from 500 theu 1500 sq. ft. Someones help would be great for an approx estimate of building & ? business.

Thanks

BDvinc
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
I have a small professional office buidling that I would like to know an approx. value of. I am not selling it for for a few years. Is there a formula for the actual value of the building & then a separate one for the business value (100% leased up). The building is 18000 sq. ft with lease spaces from 500 theu 1500 sq. ft. Someones help would be great for an approx estimate of building & ? business.

Thanks

BDvinc

It is called ordering an appraisal from a qualified Certified General Appraiser familiar with your market. :icon_idea:

The formula is top secret only know to appraisers, if they tell you they would have to kill you. :rof:
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
I have a small professional office buidling that I would like to know an approx. value of. I am not selling it for for a few years. Is there a formula for the actual value of the building & then a separate one for the business value (100% leased up). The building is 18000 sq. ft with lease spaces from 500 theu 1500 sq. ft. Someones help would be great for an approx estimate of building & ? business.

Thanks

BDvinc
In valuing an office building, it is rare for the appraiser to separate the components into the value of the "building" and the value of the "business". For most multi-tenant buildings, only a value of the real estate would be given. The real estate value assumes prudent management, which (I think) is where your "business" value would go.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Values can vary greatly from market to market. I think cap rates for office properties from Korpacz vary from 4.5% to 9%.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
There's no meaningful formula to give you to figure out a ballpark value of your building (when I say "meaningful", I mean something that you could consider reliable).

The valuation development, analysis and reporting (to you) should be commensurate with the complexity of the assignment and the with what you want to do with the information.
In you post you said you just want an approximate value; that makes the analysis part easier. But small or not, your office building presents unique characteristics (like terms of lease, quality of the tenants, building condition, your specific market, etc.) that, combined, become complex. Some one could give you a cap-rate; you don't need an appraiser for that. But if you want something more than that, and you want it from an appraiser, then you will probably need to order an appraisal.

Good luck!
 
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