Commercial property valuation

Commercial property earns: its value is driven above all by the income it generates or is capable of generating. This makes commercial property valuation methodologically more demanding than residential work — the appraiser analyses not only the asset and the sales market, but rental flows, vacancy, operating expenses and risk. We provide independent valuation of commercial property and buildings across Ukraine — from a single retail unit to office centres and logistics complexes — for Ukrainian and international owners, investors and lenders.

Commercial property types we value

• offices and office centres;
• retail property — from in-building units to shopping centres;
• warehouses and logistics complexes;
• hotels, restaurants, resorts and sanatoriums;
• industrial premises — production buildings and structures;
• non-residential premises of any designation, parking facilities and garage complexes.

Assets whose value is defined by the business operating within them — filling stations, fuel depots and similar — have dedicated pages with sector-specific methodology.

When commercial building valuation is required

• lending secured by real estate and regular revaluation of bank collateral;
• acquisition or disposal of an asset;
• contribution of property to charter capital, including cross-border corporate structures;
• revaluation of fixed assets under Ukrainian accounting standards and IFRS;
• determination of market rent, including for the lease of state and municipal property;
• litigation and division of property between owners;
• insurance and title transactions involving non-residential premises.

Valuation approaches for commercial property

The income approach leads for income-producing assets: direct capitalisation converts stabilised net operating income into value through a capitalisation rate, while the discounted cash flow method handles assets with variable flows — reflecting rental rates, vacancy and operating expenses. The market approach relies on sale and asking prices of comparable assets, adjusted for location, condition and size. The cost approach applies to specialised buildings with a limited sales and rental market. Valuations are performed under Ukrainian National Valuation Standard No. 2 on real property, with results of the approaches reconciled into a final value; IVS-based reports in English are available for international use.

Our track record with banks and business

Over more than 20 years we have performed a great number of commercial property valuations for lending, annual collateral revaluations, disposals and capital contributions. The Kanzas company has participated in the revaluation of portfolios of more than 50 Ukrainian banks, including top-ten institutions — and commercial real estate formed a substantial share of those portfolios. Our engagements include office centres, shopping and entertainment centres and major logistics complexes in bank lending projects, as well as real estate within the asset bases of large enterprises in agriculture, chemicals, mining, energy, machine building and the petroleum industry. The appraiser personally inspects and identifies every asset — a mandatory part of the engagement, which we carry out across Ukraine.

Documents required

• title documents for the asset;
• technical passport;
• documents for the land plot beneath the asset (ownership or lease);
• current lease agreements (where tenants are in place);
• operating expense data — for income-producing assets;
• client identification documents.

The exact list depends on the asset type and purpose and is agreed at a free preliminary consultation.

Questions and answers

How long is a valuation report valid? The standard validity period for real estate reports in Ukraine is 6 months from the valuation date; after that, a notary or bank may require an updated report. Updates are faster than the initial engagement.

Is an on-site inspection mandatory? Yes. Personal inspection and identification of the asset by the appraiser is a mandatory stage under Ukrainian law, and the report includes the appraiser's statement of inspection.

Do you determine market rent? Yes — market rent is a distinct valuation object. It is most often required for leasing state and municipal property, and by owners and tenants to substantiate commercial terms.

Our team, including appraisers holding international valuation certificates, has valued commercial property for over 20 years — from a single unit to office centres and logistics parks. Every engagement receives an individual approach: we are attentive to the client's situation, meet agreed deadlines and support the report until its purpose is achieved. Contact us by email or messenger to discuss your asset and receive a quotation.