What is a Commercial Property Appraisal and What Does it Cost?

What is a Commercial Property Appraisal?

A commercial property appraisal is a professional assessment of a property's market value, typically performed by a certified appraiser. It’s used to determine how much a commercial real estate asset—like an office building, retail center, apartment complex, or industrial facility—is worth at a given point in time.

Appraisals are most commonly required for:

Financing or refinancing
Buying or selling property
Tax assessments
Legal disputes
Insurance purposes

What Does it Involve?

Commercial appraisals are more complex than residential appraisals and typically include:

Property inspection: On-site evaluation of the physical condition and layout
Market analysis: Comparable sales, rental income, cap rates, etc.
Approaches to valuation:
- Income Approach: Based on the property's ability to generate income (most common)
- Sales Comparison Approach: Compares recent sales of similar properties
- Cost Approach: Estimates land value + cost to rebuild - depreciation

What Does a Commercial Appraisal Cost?

Property Type	Estimated Cost Range	Notes
Small retail/office	$2,000 – $5,000	Single-tenant, less than 10,000 sq. ft.
Mid-size multifamily (20–100 units)	$3,000 – $8,000	Price varies based on location and complexity
Large commercial/industrial	$6,000 – $15,000+	Includes warehouses, malls, or large portfolios
Complex appraisals (special-use, litigation)	$10,000 – $25,000+	May require extra reports, market studies, or testimony

💡 Turnaround Time: Typically 2–4 weeks depending on property type and market conditions.

What is a Commercial Property Appraisal and What Does it Cost?