
While the valuation process may include finding sales com-parables,
the buyers of commercial property are primarily interested in the income the
building generates. The value of a commercial building is directly tied to its income, and the value of the building is determined by dividing the net operating income by the capitalization rate for the area. Sometimes, the business owner happens to
own the building the business is located in, and is selling the building and the business in one transaction. In this case, additional pricing considerations need to be taken into account as well.
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