Commercial property valuation

[Posnow]

Hi,
I have limited experience with commercial property and want to sell a share of a tenanted premises. I need a valuation to arrange sale to the other partners. Can anyone with some experience here tell me what i should be paying for the valuation to be done? The property in total is probably worth 3-4mill.
Thanks in advance for any help.
Pos

 

[Peter_Tersteeg]

That's a very open ended question. The cost of a commercial valuation can depend on the size, location and the nature of the property. It can also depend on the nature and figures of the business currently tenanting the property.

There's lots of variables. The best way to get an accurate answer will be to simply contact several registered valuers and request quotes from them.

 

[Posnow]

Thanks PT. I spoke to one valuer over the phone and he lead me to believe that they basically charge a percentage of what they value the building at .... eg about $4000 for a 4mill property. (Rent is currently about 290K pa, but i got the impression that didn't really influence the cost of valuation)..... OK, will make some calls. Any suggestions on reputable companies? (The building is in Melbourne's west).
Thanks again.

 

[Bird Dog]

As PT has already indicated, you won't get an accurate figure as there are simply too many variables.
I recently paid $1,000 for a bank valuation for a property valued a little under $1mil if that helps but again, there is no set rule.
If for arguments sake, the property has several different tenants, that means several different leases the valuers needs to check so that also adds to the price.
Something else you may wish to consider Posnow is how your partners will be contributing to their share of the property.
If they are financing, this will effect the final valuation figure as valuers can typically value a property lower if they know it's for a bank just to cover their behind.
Also make sure your valuer is accredited with the lenders they are securing the finances through otherwise it may not be worth the paper it's written on.

Good luck.

B.D

 

[chilliblue]

Unfortunately you are going to have a ring several different valuers to attain a range of prices.

Valuers can sometimes be like insurance companies. They have too much on their plate and will only take on work if the price is right.

Contact some of the major nationals like CBRE, Knight Frank or Colliers and see if one their guys can help.

 

[Rolf Latham]

How much money you got : )

ta
rolf

 

[RightValue]

$4,000 sounds about right, but the commercial boys are pretty quiet at times in the current market so some may drop their fees. A range of $2,500 to $5,000 is likely.

cheers
RightValue

 

[Posnow]

thanks!

Thank you all - all those replies are helpful.
Pos