Commercial Property

Commercial Property

Herron Todd White provides independent Commercial Property backed by local expertise and national consistency.

Frequently Asked Questions

What types of commercial property do you value?

We value office buildings, retail centres and shops, industrial and logistics facilities, and specialised assets such as childcare centres, medical centres, and hospitality venues. Each is valued by a specialist who knows that sector and its local market.

How do you value an empty commercial building?

We estimate the rent the building could achieve if leased at market rates, then convert that into a value using a market capitalisation rate. We then deduct the likely costs, incentives, and time needed to find a tenant. We also compare the building with recent sales of similar vacant properties.

What is a capitalisation rate?

A capitalisation rate, or cap rate, is a property's net income as a percentage of its value. It reflects the return investors accept for that type of property. Lower cap rates generally indicate lower perceived risk or stronger growth expectations, and produce higher values.

Does a NABERS rating affect an office building's value?

It can. A strong NABERS rating signals lower running costs and better environmental performance, which many tenants look for. Some tenants, including many government agencies, require a minimum rating before they'll lease. A low rating can reduce tenant demand and, in turn, value.

What makes an industrial property valuable?

Location and function. Industrial buyers and tenants look for access to major roads and ports, sufficient clearance height, hardstand and truck access, and efficient site coverage. Properties that meet modern logistics needs typically attract stronger demand.