Importance Features of a Commercial Building to Appraise

In many cases, a commercial building appraisal can be an inexact science. There is so much going on in corporate buildings, with so many features to take into account, that it can be exceedingly difficult to arrive at a fair estimate of the property’s value. This is further compounded by ever-evolving social and legislative expectations of commercial buildings, many of which put them under greater scrutiny than ever before. To help you determine how to build your checklist come appraisal time, keep reading to discover 5 important features of a commercial building to appraise.

Energy Efficient Features

Energy efficiency is obviously a critical component of any type of building in 2022. However, because of the redoubled focus in this regard over the past decade, many appraisers who have been in the field for a long time don’t have as much experience in this area and have difficulty putting a monetary value on energy efficiency features. In fact, many professional appraisers list energy efficiency or “green” features at the top of their list of the most difficult components of a commercial building to appraise.

Straightforward features such as solar panels, smart glass, motion-detected lights, and smart thermostats give appraisers enough trouble in and of themselves. However, where matters get extra complicated is in the realm of features that improve the insulation and airtightness of the building. Many of the most innovative features, such as continuous insulation and facade screening systems, are a bit more difficult to quantify as to how they improve energy efficiency. Therefore, it is incumbent upon the building owner to collect as much hard data as possible to help the appraiser come to a monetary value of how these types of temperature mitigation systems can improve the energy efficiency of the building.

Air Quality Controls

Speaking of features that have recently taken center stage, air quality features are definitely in the conversation. Thanks in large part to the COVID-19 pandemic, ensuring the quality of interior air is of utmost importance. Therefore, it is essential that any features installed to improve air quality, such as gravity dampers, commercial air scrubbers, or enhanced HVAC filtration, be brought to the attention of appraisers.

Centrally Used Areas

In commercial buildings, it can be easy to focus solely on the rentable space. Whether it be apartment units or office suites, building owners can fall into the trap of concentrating their attention on income-producing units and neglecting the common areas of the property.

However, with the rising cost of fuel and the increase in the cost of eating out, more and more people are staying close to home base, whether that be at home on the weekend or at work during the week. Therefore, it is important that the quality of a property’s centrally used areas be assessed during an appraisal. Whether it be the pool area, the receiving room for multi-unit mailboxes, lunch commons, or rec center, each of these types of facilities can have a profound impact on a commercial building’s value.

Curb Appeal

Although curb appeal has long been recognized as a valuable component of single-family homes, its importance in commercial facilities has garnered increased attention in recent years. Taking pride in the workplace and guaranteeing employee mental health is coming under greater scrutiny recently, so it is incumbent upon corporate building owners to create an exterior ambiance that boosts employee positivity. In addition, owners of apartment complexes and townhomes are seeing the value in creating curb appeal to attract quality tenants through modern cladding systems, attractive windows, and detailed landscaping, so all of these exterior factors need to be taken into account when appraising a commercial building.

Safety Compliance

Safety compliance is one of the most important factors to include in a commercial building appraisal. Not only will safety features affect who can purchase your property, but it will greatly influence who will want to purchase your building. Some areas to consider include:

ADA compliance, such as wheelchair ramps, elevators, and handrails in restrooms
Smoke baffles, sprinklers, and fire curtains
Credentialed locks to guarantee secure access

While these safety components have always been an important aspect of commercial facilities, their value has been brought under the microscope recently in the wake of the severe natural disasters and human tragedies rocking the country, so be sure they are given the proper consideration at appraisal time.

Most Important Aspects of a Commercial Building to Appraise

There are many factors to balance during a commercial building appraisal, with some of the most important at risk of being lost in the shuffle. Therefore, to make sure that your commercial building is being fairly valued at appraisal time, be sure to highlight energy-efficient features, air quality controls, centrally used areas, curb appeal, and safety compliance to help your property stand out to your appraisal professional.

Author: Sam Willis is a freelance writer that loves sharing his knowledge and expertise on real estate. He lives in Atlanta, Georgia where he enjoys spending time with his wife and researching real estate trends in his free time. Sam’s work as a freelance writer can be found on Building Product Advisor, a new construction industry resource launching in Fall 2022.

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