Commercial Comps- Finding ARV or ABV Using Cap Rate

Commercial comps don't really work like residential comps. While residential comps are easily available, commercial comps are typically only available through a few sources, all very expensive. Even once you get these comps, they're largely meaningless because every commercial property is different and is valued based on income and market cap rates. There's a good training Daniil recorded on valuing commercial and multifamily properties here: https://rehabvaluator.com/building-apartments

1. To calculate ARV for a commercial property, you'll first want to find your Net Operating Income (NOI). To do so, click the gray box to enter #42 Projected Operating Income and #43 Projected Operating Expenses.

2. After you have entered your operating income and expenses, click the green Calculate button for line item # 32, After-Repair Value (ARV) for RENT.

3. After clicking Calculate, click the green Cap Rate button and, in the field that then displays, enter your Market Cap Rate % to calculate the ARV for your commercial property.