How commercial properties are actually priced

Commercial real estate is valued on income: value = net operating income ÷ cap rate. A property producing $80,000 of NOI is worth about $1.45M at a 5.5% cap and about $1.14M at a 7% cap — which is why knowing the right cap rate for your asset class and area matters more than any listing price. This tool works in both directions: it shows the cap rate implied by an asking price, and the value implied by your target cap rate.

It also checks what a lender will check first: the debt service coverage ratio. If DSCR comes in low, the loan gets smaller or the price has to come down. Selling a restaurant or food-service business? The restaurant value estimator handles that separately. For anything else commercial in Etobicoke or the GTA — retail, industrial, mixed-use, plazas — see how I work with commercial clients.