Commercial building valuation software

Data Network An unprecedented network of data providers. Ownership Portfolios Connecting information on properties, transactions, people and companies to provide access to portfolio intelligence. Research Reports Data-driven market and industry insights from Reonomy Research. Commercial Real Estate Valuation Commercial real estate valuation is fairly different than residential. Below, we dive into the best approaches for finding commercial real estate values.

More importantly, it makes finding comps a breeze. The Cost Approach Another approach is the cost approach. Costs to Build New can be calculated a number of ways: The comparative unit method calculates a lump-sum estimate for the costs to build new on a per square foot basis, looking at different categories of construction materials e.

The segregated cost method calculates the individual cost of various building components, such as the cost to build a new roof, the cost of new HVAC systems, and so forth. The unit-in-place method takes the segregated cost method to the next level by breaking down building components even further. For instance, it would analyze a roof not as a whole structure, but rather in terms of the individual pieces of the roof like joists and decking plates.

The quantity survey method includes a detailed estimate for each building component and material down to the exact quantity needed to replicate the structure, and then adjusts for labor and other overhead accordingly. The Income Approach The income approach is the most frequently used appraisal technique when it comes to valuing a commercial real estate asset.

You will need a range of data sources, including economic and market research, to build an accurate cash flow forecast model. But with so much data being analysed, having clean data is critical. This will enable you to stress test your market and leasing assumptions, ensuring you have an accurate cash flow forecast and commercial property valuation report. Real estate can be unpredictable.

Your anchor tenant might fall into bankruptcy, newer assets may capture your market's attention, or new taxes could hit your bottom line. Then there's disruptive technology that's promising to reshape real estate. The fallout of Covid has proved that unexpected events can occur at any time, adversely impacting property cash flows and value.

Last year, investors, asset managers and valuers scrambled to understand how the commercial real estate market would be affected and how to best mitigate any risk on property value. Speed is critical in these circumstances, and without up to date property data, this is near impossible. Real estate markets are dynamic and complex.

The lack of clarity into the future and the absence of comparable transactions has made valuing a commercial building harder than ever.

To help make sense of this uncharted territory, real estate teams are looking to a tried and true commercial property valuation method: discounted cash flow DCF.

The only disadvantages; the process is only as good as the analyst's assumptions. Problem 1: Visibility. Problem 2: Variation. Problem 3: Volatility. Problem 4: Valuations. All Rights Reserved. Get answers to some of the most frequently asked questions below.

If you don't find the answer to your question or are unsure if it is the right solution for you, please contact us at argus altusgroup. SnapInspect boosts productivity, reduces business costs, and maximizes commercial property portfolio performance. Supercharge your commercial property portfolio with SnapInspect.

Whether your portfolio has a handful of properties or thousands, SnapInspect equips you with a suite of features that your business needs to be successful, with more features than any other inspection solution on the market. Use our pre-made industry-proven templates to hit the ground running. Or use our checklist editor to create your very own template. Impress your clients with a consistent and comprehensive report.

There are certainly scenarios where it makes sense to use multiple approaches to reach a final valuation. Fortunately, the market for commercial real estate appraisal software has exploded in recent years. Dozens of tools exist to help make valuing commercial property easier and more accurate than ever.

Commercial real estate appraisers have a duty to provide the most accurate, unbiased appraisals based on specific, in-depth property and market data. Commercial real estate appraisers are, too. An appraiser must always be prepared to defend a valuation if ever brought to court, for example, even in assignments where litigation seems unlikely. The software applications out there today help appraisers pull market data, analyze comps, and generate different types of customized reports.

You can use the Reonomy Platform to quickly access a long list of comps on any commercial asset nationwide. You can search Reonomy for properties by location, asset type, building and lot characteristics, sales history, debt history, and owner details. Through that list, you can further dive into individual properties to better understand the market and nearby comparable assessed values.

You can also see the sales history and building and lot characteristics of those properties—from the most recent sale date, to most recent sale price, to building and lot size and age.

Translation: you can find properties of a specific type and size, that have sold in the very near future. PropertyMetrics is a great tool for commercial real estate appraisers who need assistance creating pro formas and other detailed financial models. The software can also help create real estate equity waterfall models. PropertyMetrics combines its cloud-based tools with multiple online courses that help explain the logic behind these financial models.

Collectively, these tools help an appraiser create presentation-quality financial reports while being able to intelligently defend the numbers on the page.