Valuation of  commercial properties

Valuation of commercial property is a very important step in many commercial real estate transaction.  The income approach is used frequently for the bigger ones commercial properties.It  allows investors to estimate the value of a property by taking the net operating income of the rent collected and dividing it by the capitalization rate.Income producing  property is a type of property designed to earn income through renting, leasing or price appreciation. Income property can be either  residential or commercial.The most recognizable forms of valuing residential real estate  is the sales comparison approach.