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commercial real estate

Understanding Commercial Property Value

Valuing commercial real estate doesn't have to be complicated. Here's how it works.

[Updated: Feb 04, 2021 ] May 26, 2020 by Liz Brumer

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Cost Approach Income Approach Gross Rent Multiplier Sales Comparison
Value of land + value of building Current value = net operating income ÷ cap rate Value = annual gross rent x gross rent multiplier Average of comparable properties in similar condition, age, area, and type

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