Commercial Property Valuation Across All Sectors
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Valuate commercial real estate
In-depth valuation of commercial and investment properties
Whether it’s an apartment building, an office complex, or commercial space, a well-founded property valuation is the basis for sound investment decisions. We look beyond square metres and rental income, assessing earning potential, market opportunities, and risks. The result is the clarity you need for buying, selling, or optimising your portfolio.
Choose your approach to valuation
Precise analysis for every asset class
Every asset class has its own value drivers – from tenant quality and location to operational specifics. That’s why we provide tailored solutions across the full spectrum of investment and commercial real estate, from apartment buildings to commercial properties such as office buildings and logistics space.
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.
Rental agreement
This is the key factor. We assess lease terms, and tenant creditworthiness. 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.
Sustainability & energy efficiency
Sustainability, particularly energy efficiency, is becoming increasingly important for the long-term value and competitiveness of commercial properties. Buildings that fail to meet evolving sustainability expectations may face reduced demand and potential devaluation.
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What you need to know about the valuation of your commercial property
Clarity for your investment decision
Beyond the key data – property type, year of construction, size, and leasable area – a valuation also takes into account individual characteristics that can positively or negatively influence the value. These include aspects such as period features, balconies, apartment layout, renovation status, heating systems, conservation restrictions, elevators, and total occupancy.
To determine the positioning and true market value of a multifamily building or any commercial asset in Chile, it is essential to conduct an analysis based on recent comparable transactions (benchmarking).
Below are the key factors that define the position of your property:
1. Comparable transactions analysis
It is not enough to look at listing prices; it is necessary to analyze the actual closed sales in the area. This allows us to identify the value in UF per square meter (UF/m²) and the capitalization rates (Cap Rates) at which assets with similar characteristics are being traded.
2. Value attributes and asset condition
The market position is adjusted according to critical variables:
Location and Connectivity: Proximity to subway stations, main roadways, and services.
Conservation Status: Whether the property requires immediate CAPEX (capital expenditure) for remodeling or if it has energy efficiency certifications.
Unit Mix: In the case of multifamily properties, the apartment typologies (studios, 1 bed/1 bath, 2 bed/2 bath) determine the leasing speed and vacancy rate.
3. Justified asking price
This comprehensive analysis provides us with a solid technical foundation to recommend a competitive asking price. A well-founded price from day one minimizes exposure time on the market and prevents asset fatigue in the eyes of institutional investors.
The choice of method depends on the type of commercial property. For standard investment assets, such as offices or logistics facilities, the income capitalization approach (or simply Income approach) is the primary method. In the case of leased and operator-managed properties, rent serves as the income metric. For complex investments and international investors, the discounted cash flow (DCF) method is the standard. We apply the most appropriate method for your property to ensure an accurate and reliable valuation.
1. Contract analysis and WALT
Unlike a standard residential lease, commercial contracts have diverse clauses. It is vital to calculate the WALT (Weighted Average Lease Term).
An asset with 10-year contracts with highly solvent companies (such as a bank or a supermarket) is valued much higher than one with multiple small tenants and short contracts.
2. "Land Use" and conversion potential
The technical complexity lies in the Communal Regulatory Plan (PRC). An expert appraiser must evaluate the "highest and best use" of the land:
Can this commercial space be transformed into a multifamily building?
Do current regulations allow an obsolete office to be converted into a last-mile warehouse (Dark Store)? These alternative use possibilities can either skyrocket or penalize the asset's value.
3. Financial Modeling (DCF)
For investment assets, the Discounted Cash Flow (DCF) method in UF (Unidad de Fomento) is used. This involves projecting revenues and expenses (OpEx) over 5 or 10 years, considering:
Rent escalations: Annual adjustments beyond the UF.
Capital expenditures (CapEx): Necessary investments in elevators, HVAC systems, or facades.
Discount Rate: A calculation that reflects country risk, real estate sector risk, and the cost of financing.
4. Tax and VAT impact
As seen previously, determining whether the sale is subject to VAT and how the land value is deducted is a highly precise task. An error in this calculation can alter the net yield expected by the buyer, causing the transaction to fall through right in the middle of Due Diligence.
In the Chilean market, although they are sometimes used synonymously, they have very different purposes and legal validity:
1. Valuation (or Commercial Value Opinion)
It is an estimate of the market value with a strategic and commercial focus.
Purpose: It is ideal for investors or owners of multifamily buildings who need to make quick decisions, such as setting an asking price for sale, analyzing the profitability of a cash flow, or rebalancing an asset portfolio.
Who performs it: It is usually carried out by specialized real estate brokers or consultants who have their finger on the daily "pulse" of the market and closing Cap Rates.
Focus: It focuses on the business opportunity, development potential, and comparison with recent transactions (benchmarking).
2. Appraisal (Tasación)
It is an exhaustive technical and legal report that certifies the value of a property under strict regulations (such as those of the Internal Revenue Service SII or the Financial Market Commission CMF).
Purpose: It is the document required by Banks to grant commercial mortgage loans, by Courts of Justice in cases of partitions or litigation, and by the SII for tax or inheritance purposes.
Who performs it: A certified appraiser (many belong to associations like ASCHITAC) who follows national and international valuation standards.
Focus: It centers on technical rigor, title studies, municipal final acceptance (recepción municipal), and the exact physical measurement of the property.
In the Chilean market, although they are sometimes used synonymously, they have very different purposes and legal validity:
1. Valuation (or Commercial Value Opinion) It is an estimate of the market value with a strategic and commercial focus.
Purpose: It is ideal for investors or owners of multifamily buildings who need to make quick decisions, such as setting an asking price for sale, analyzing the profitability of a cash flow, or rebalancing an asset portfolio.
Who performs it: It is usually carried out by specialized real estate brokers or consultants who have their finger on the daily "pulse" of the market and closing Cap Rates.
Focus: It focuses on the business opportunity, development potential, and comparison with recent transactions (benchmarking).
2. Expert Appraisal (or Official/Bank Appraisal)
It is an exhaustive technical and legal report that certifies the value of a property under strict regulations (such as those of the Internal Revenue Service [SII] or the Financial Market Commission [CMF]).
Purpose: It is the document required by Banks to grant commercial mortgage loans, by Courts of Justice in cases of partitions or litigation, and by the SII for tax or inheritance purposes.
Who performs it: A certified expert appraiser (many belong to associations like ASCHITAC) who follows national and international valuation standards.
Focus: It centers on technical rigor, title studies, municipal final acceptance (recepción municipal), and the exact physical measurement of the property.
In Chile, taxes are not just an additional cost, but a determining factor that defines the net profitability (Yield) and an investor's exit strategy. An error in tax calculation can drastically alter an asset's valuation.
Here is the detailed adaptation to the Internal Revenue Service (SII) system and the regulations in force in 2026:
The Impact of Taxes on Commercial Valuation
Taxes in Chile affect valuation from three fronts: operating cash flow, acquisition cost, and final profit after the sale.
1. Income Tax and Capital Gains (Mayor Valor)
The treatment of the capital gain (mayor valor) obtained in the sale depends on who is selling:
Companies (General Regime): The gain is considered ordinary income and is taxed under the First Category Tax (Impuesto de Primera Categoría, usually 27%). Here, an accurate valuation is vital to determine the asset's tax cost and minimize the fiscal impact.
Individuals (Personas Naturales): There is a lifetime cumulative exemption of up to 8,000 UF on gains for properties acquired after 2004. If this amount is exceeded, the surplus is taxed with a single 10% tax or according to the Global Complementary Tax (Impuesto Global Complementario).
2. The VAT Factor (19%)
As we have seen, the application of VAT (IVA) is critical. If a transaction is subject to it, the buyer must disburse an additional 19% (on the value of the construction), which can affect their financing capacity and return on investment (ROI). An expert valuation helps to correctly break down the land value to legally reduce this taxable base.
3. Property Tax (Contribuciones)
For commercial and multifamily assets, property taxes are the most significant operational expense (OpEx).
Impact on NOI: The property's market value is calculated based on the Net Operating Income. If property taxes rise (due to a reassessment by the SII), the NOI drops, and consequently, the asset's value under the capitalization method also decreases.
