Commercial Property Valuation Across All Sectors
Request a personal consultation for all other asset classes.
Valuate commercial real estate
In-depth valuation of commercial and investment properties
Whether it’s a multi-family property, office complex, logistics facility, or hotel, a well-founded valuation is the basis for sound investment decisions. We look beyond square meters and rental income to assess income potential, market opportunities, and risks. The result is the clarity you need for buying, selling, or optimizing your portfolio.
Choose your approach to valuation
Precise analysis for every asset class
Every asset class has its own value drivers – from tenant creditworthiness and location to operational specifics. That’s why we provide tailored solutions for all investment and commercial real estate. Our services cover multi-family properties as well as complex commercial assets, including office, logistics, retail, and hotel properties.
Personal expert assessment
A comprehensive property valuation brings together legal, technical, and financial analysis. Our advisors are available to support you personally, assessing your property on an individual basis – whether it’s an apartment building, an office, or any other type of commercial real estate.
What determines the value of your commercial property
The value of a commercial property is directly linked to the future income it can generate. For this reason, commercial real estate is primarily valued using the income approach. This method is based on sustainable rental income and takes into account operating costs as well as a market-based capitalisation rate.
Rental agreement (WALT & credit rating)
This is the key factor. We assess lease terms (WALT), tenant creditworthiness, and rent indexation. A secure, predictable cash flow remains the most significant driver of value.
Third-party usability
How flexible is your property? Can the office space be easily repurposed? High third-party usability minimizes the risk of vacancies and increases the value.
Location
The value of a commercial property is directly tied to the future income it can generate. Accordingly, commercial real estate is primarily valued using the income approach, which bases the assessment on sustainable rental income while accounting for operating costs and property-specific financing expenses.
Condition & ESG compliance
ESG compliance, particularly energy efficiency, is becoming increasingly critical for the positive value development of commercial properties. Non-compliant buildings may face significant devaluation.
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What you need to know about the valuation of your commercial property
Clarity for your investment decision
In addition to a property’s key facts – asset class, year of construction, size, and lettable area – our valuation considers the individual features that influence value. In the Andorran market, these include period architectural details (such as traditional stone and slate finishes), balconies, unit dimensions, renovation status, heating systems (essential in a mountain climate), heritage or tenant protection regulations, passenger lifts, and full occupancy rates.
To determine the realistic market value of your multi-family or commercial property in the Principality, it is essential to include relevant comparable transactions in the analysis. These show which factors and price levels per square meter similar properties achieve, taking into account the specific Parish (Parròquia), condition, and other key criteria. This provides a solid basis for recommending a well-founded pricing strategy.
The valuation method depends on the type of asset. In Andorra, standard investment assets such as offices or logistics warehouses are typically assessed using the following methods:
Comparison Approach
Residual Method
Cost Approach
Income Capitalization / Discounted Cash Flow
We apply the most suitable approach to deliver a rigorous valuation of your commercial property.
Valuing commercial properties is significantly more complex than residential real estate. Factors such as alternative use potential and detailed lease analysis require specialized expertise. Furthermore, local planning regulations (POUP) from the different Comuns, the Andorran tax framework, and mountain-specific market trends must be accurately factored in to determine a realistic property value.
A commercial property valuation provides a strategic foundation for your sales or financing decisions. A comprehensive, legally compliant appraisal (prepared in accordance with the technical standards applicable in the Principality) is conducted by a certified expert and is required for court proceedings, specific bank requirements, or official documentation. We advise you on the type of report best suited to your needs.
The expected return on commercial properties in Andorra depends heavily on the Parish (e.g., the prime commercial axis of Escaldes-Engordany vs. peripheral areas), asset class, property quality, and tenant creditworthiness. There is no one-size-fits-all figure, as returns vary significantly between Core assets and Value-add investments. Anticipated returns are therefore closely linked to your specific investment strategy.
Taxes are a key consideration in the Andorran market. Commercial properties are often held as business assets; therefore, upon sale, capital gains are subject to Corporate Income Tax (IS) or Personal Income Tax (IRPF), depending on the ownership structure. Additionally, it is vital to consider the Tax on Capital Gains from Real Estate Transfers (Impost sobre las plusvàlues). A precise valuation is essential for effective tax planning within the Principality.
