KO Appraisal
Commercial service
Office
Low-, mid-, and high-rise office buildings and professional condominiums.
What makes this assignment different
Post-2020 office valuation turns on lease rollover risk and tenant credit far more than on price per square foot.
Who orders this appraisal
- Owners
- Lenders
- Investors
- Attorneys
What the engagement covers
- Lease structure before anything else. Who pays operating costs, what escalations apply, and what happens at expiry determine how much of the gross rent actually reaches the owner.
- Weighted average lease term and the rollover profile. A building with most of its income expiring in the same eighteen months is a different asset from one with staggered expiries, even at identical current income.
- Tenant credit. Income from a covenant a lender recognises prices differently from the same income from a small local firm on a short lease.
- The cost of re-letting: downtime, leasing commissions, and tenant improvement allowances. These are real, lumpy, and frequently omitted from an owner statement.
- Building class, floor plate, parking ratio, and whether the space suits current occupier requirements. Older stock that cannot be reconfigured competes on price.
- Whether the highest and best use is still office. Where it is not, the analysis is a conversion or redevelopment analysis and the income approach answers the wrong question.
How it works
- The leases themselves for major tenants, not a summary. Summaries omit exactly the provisions that matter: options, exclusions, caps on recoveries, termination rights.
- A rent roll reconciling to the operating statement.
- Two to three years of operating statements with recovery income shown separately.
- A schedule of tenant improvement and leasing commission costs on recent deals.
- Any pending lease negotiations, renewals, or known vacancies.
What you receive
USPAP-compliant appraisal of office property. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.
| Appraiser | Kevin O'Brien, MAI, SRA |
|---|---|
| License | CA Certified General Real Estate Appraiser #3005065 |
| Standards | USPAP compliant |
| Turnaround | 1–3 weeks standard; rush available |
| Testimony | Deposition and expert witness testimony available |
Common questions
Which approach to value governs for office property?
Income capitalisation governs. Where lease expiries are uneven or the building is in lease-up, discounted cash flow models the actual pattern and direct capitalisation cannot. Sales comparison supports the conclusion and tests it. The cost approach is rarely decisive for older office, because measuring accrued depreciation becomes largely a matter of judgement.
What office subtypes do you appraise?
General purpose, medical, creative and loft, business park, R&D, and office condominium, per his declared competency.
What is the most common error in these valuations?
Valuing an office building on current income without pricing the rollover. If a substantial share of the income expires within the holding period, the cost and risk of re-letting belongs in the analysis explicitly. A report that treats a short-dated income stream as though it were durable overstates value in a way that is obvious to a reviewer.
Next step
Tell me about the property.
Most assignments start with a short call, property type, the purpose of the appraisal, and the deadline you are working against. You get a fixed quote before any engagement, never contingent on the value reached.
Typical commercial fees range $2,000–$4,000. Residential and simpler assignments quote lower. Every engagement is quoted in advance, so the figure is known before work begins.