VALUE ASSESSMENT FOR COMMERCIAL PROPERTY AND INDUSTRIAL BUILDINGS
When buying or selling a commercial property, the big difference with conventional residential properties is the valuation. Unlike simple residential properties, which are valued using the asset value method, commercial properties are valued using the capitalised earnings method – although this is also supported by the asset value method.
It is important to be well informed in advance about the exact framework conditions of the procedure for determining the value of commercial property. Furthermore, a commercial property is also treated differently for tax purposes than a purely residential property. The income value procedure is used in particular for buildings and properties for which the achievable additional yield is of primary importance for the estimation of the market value. This applies to residential rental properties (multi-family houses), commercial properties (office buildings, commercial buildings, shopping centres) and special properties (hotels, multi-storey car parks, logistics areas) but also to mixed-use properties. This includes, for example, residential buildings with an integrated workshop or commercial space.
Commercial use of a property can also be on a smaller scale. If, for example, a rented flat is used primarily for commercial purposes, it can be declared commercial property under certain conditions.
Of course, our advisory services include the valuation of commercial property.