Commercial appraisal involves an income approach to value, using the rents and expenses associated with a property in order to determine its net operating income.
This net operating income is evaluated using a capitalization rate, or cap rate, which helps provide an assessment of the property’s value in comparison to other properties on the market.
The cost of a commercial real estate appraisal is typically between two and three thousand dollars, though this can vary depending on factors such as the size and scope of the appraised property.