Setting an asking price: which commercial property comparisons matter?

1. Define what is being offered

Before looking at prices, describe the sale precisely. Is the property being offered with tenants in place, with vacant possession subject to the relevant agreements, or with a future redevelopment possibility? Record the area, condition, tenure, access and material restrictions. A price discussion becomes confused when one person is valuing the existing income and another is imagining a different use.

Write a short factual property brief. Separate confirmed information from items still being investigated. If a marketing claim depends on a lease expiry, an approval or another party’s agreement, identify that dependency rather than treating it as settled.

2. Separate asking prices from completed transactions

Keep competing listings and completed sales in different groups. An asking price shows an owner's current position; a completed transaction is evidence of a deal reached under its particular circumstances. Neither should be copied without examining the details. Ask what is known about the date, occupancy, condition and terms, and identify gaps in the information.

Use current competition to understand the buyer's choices. If another property looks cheaper, investigate whether it offers the same practical utility. A useful comparison explains the difference rather than dismissing it or assuming the advertised figure establishes your property's value.

3. Compare the differences that could change the decision

For industrial space, discuss loading, access, usable layout and the requirements of the likely occupier. For retail, consider frontage, access and the tenancy. For office space, consider building services, adaptability and the space a purchaser could actually use. Where income matters, have the leases and operating information reviewed rather than comparing headline rents alone.

Illustrative example: two units have similar advertised floor areas, but one includes substantial office space while the other offers more warehouse area. A buyer seeking storage may not value each square foot equally. The comparison should explain the operational difference before relying on a price-per-square-foot figure.

4. Build a range and identify the assumptions

Ask for a reasoned range with the strongest supporting evidence, the weaker evidence and the unresolved questions shown separately. Then discuss an asking strategy within the context of your objectives. The desired price, estimated market value and likely net proceeds are different questions. BC Assessment describes direct comparison, income and cost as approaches to value, with the approach depending on how the property trades. That background helps frame the questions; it does not establish an asking price for your particular sale. BC Assessment: Assessing industrial, commercial and investment properties.

Review your selling costs and financing obligations separately with the appropriate advisers. If you need a formal appraisal for lending, reporting or another purpose, confirm the required scope and qualifications. A marketing discussion is not a substitute for that assignment.

5. Decide how you will review the response

Agree in advance on what feedback is useful: qualified inquiries, repeat viewings, requests for documents and consistent objections. Review price alongside presentation, information quality, property condition and terms. Avoid drawing a sweeping conclusion from one comment or one quiet period.

Keep a record of changes and the reasons for them. A useful pricing review ends with a decision: maintain the approach, fill an information gap, improve the offering or reconsider the price. There is no single adjustment or timetable that fits every commercial property.

Sources and further reading

• BC Assessment: Assessing industrial, commercial and investment properties

General information for commercial property decisions in Metro Vancouver and the Fraser Valley. Confirm property-specific requirements with the appropriate legal, financial and technical advisers.