How can a broker produce a valuation report for an office building quickly?
A broker can produce an office valuation report quickly by starting from the rent roll and recent office sales nearby, building an income approach on in-place and market rents, and cross-checking with price per square foot from the sales. The report should show both approaches, the cap rate used, and the lease rollover that drives most office risk today.
Answered
A broker can produce an office valuation report quickly by starting from the rent roll and recent office sales nearby, building an income approach on in-place and market rents, and cross-checking with price per square foot from the sales. The report should show both approaches, the cap rate used, and the lease rollover that drives most office risk today.
What an office value report needs
- Rent roll analysis: tenants, rents per square foot, lease expirations, renewal options.
- Market rent and vacancy for the submarket and the building's class.
- Operating expenses and reimbursements, by lease type.
- Sale comps: recent office sales of similar class and size, with price per square foot and cap rate where known.
- Rollover risk: the share of rent ending in the next three years and the cost to re-lease it.
A fast workflow
1. Read the rent roll and the operating statement directly; do not re-type them.
2. Pull sale comps and lease comps for the submarket.
3. Build stabilized NOI with market vacancy and a re-leasing reserve.
4. Apply a cap rate supported by the comps.
5. Cross-check with price per square foot.
6. Write the summary: value range, key assumptions, rollover risk.
Office-specific traps
- Asking rents are often well above signed rents; use signed leases.
- Free rent and tenant improvement packages can be large; ignoring them overstates value.
- A building with a major tenant leaving soon is worth much less than its in-place cap rate suggests.
How Titleman helps
Titleman produces a BOV one-pager or a full value read from the address and the rent roll, with each comp cited and the rollover shown. It is a broker opinion, not an appraisal. See how Deal Review works: https://titleman.ai/products/deal-review