Whether office building, warehouse or business premises: the Value of a commercial property determines sales success, financing options and investment decisions. But how can this value be determined realistically and in line with the market? In this article, you will find out which valuation methods are used in Austria, which factors play a role and when a professional valuation is essential.
Valuation methods for commercial real estate: three ways to market value
The Austrian Property Valuation Act (LBG) prescribes three recognized methods for determining the market value:
1. comparative value method
The value is derived from real sales prices achieved for similar properties. It is particularly suitable for standardized properties with high data availability - e.g. simple business premises or plots of land. Cf. Comparative value method
2. income capitalization approach
This method is particularly important for rented properties: it determines the value on the basis of future income (net rental income), discounted at a capitalization rate in line with the market. This is the central procedure for the valuation of commercial properties. Cf. Income capitalization approach
3. asset value method
This method is used for owner-occupied properties. It is based on the production costs less depreciation (e.g. due to age or wear and tear) plus the land value. Cf. Asset value method
Value factors: What influences the price of your property?
Several factors determine how high the value of a commercial property is assessed on the market:
| Factor | Meaning |
|---|---|
| Location | Central locations or easily accessible commercial zones significantly increase the value. |
| Possibility of use | Flexible use (e.g. as a warehouse, office or production facility) is advantageous. |
| Occupancy rate | Fully let properties with long-term rental agreements are considered to be particularly stable in value. |
| Condition & equipment | Modernization requirements or outdated technology lead to discounts. |
| Legal framework | Dedication, building law requirements or tenancy law (MRG) directly influence the market value. |
When does a professional valuation make sense?
A well-founded valuation by a court-certified expert is recommended if:
- A sale is planned
- Financing is applied for (bank requires expert opinion)
- Inheritances or divorces are involved
- For tax or accounting purposes
Tip: Professional valuations are based on the LBG and check several procedures for plausibility.
Checklist: How to prepare your commercial property for valuation
| Step | To-do |
|---|---|
| Provide documents | Land register excerpt, plans, building permit, rental agreements, energy certificate |
| Have the property inspected | Access for experts, show all rooms |
| Clarify questions about use | How is the property currently used? What permits are available? |
| Document condition | Photos, defect logs, renovation certificates |
Key Takeaways
- Three valuation methods: Comparative, income and asset value methods
- Value factors: location, use, condition, legal situation, letting
- A professional valuation avoids misjudgments
- Good preparation saves time and costs for the expert opinion
Conclusion
The Value of a commercial property determines the success or failure of sales and financing. Those who rely on professional valuation methods have a clear advantage. Our recommendation: Have your property valued by a certified expert and seek advice from experienced estate agents in advance.
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How often should a commercial property be valued?
At least every 5 years or in the event of significant changes (e.g. conversions, new tenant structure). In the event of an intention to sell: immediately before the sale.
Who may carry out a valuation?
Certified real estate appraisers, court-certified experts or experienced real estate agents with sound training.
What does a valuation report cost?
Depending on the complexity and size of the property: between 1,000 and 3,000 euros (net). Please note: Often tax-deductible.
Is an online value calculator sufficient?
No - such tools only provide rough guidelines. A well-founded decision always requires an individual assessment on site.
How is the rent included in the property value?
In the income capitalization approach, the sustainably achievable net rent is central - it directly influences the value via the capitalization interest rate.
