Broker Opinion of Value

What is a Broker Opinion of Value?

A Broker Opinion of Value, or BOV, is a professional assessment of what your industrial building is worth in today’s market. Unlike a formal appraisal, a BOV is provided at no cost and delivered quickly, giving you an honest, data-backed starting point before making any decisions about selling or leasing your property. But not all BOVs are created equal.

Our Approach: Real-Time Intelligence, Not Just Comps

Most brokers pull sold comps, review active listings, and deliver a price per square foot. We go further. Finding sale comps is straightforward. Lease comp data is different: we actively track every lease transaction in our market, going directly to the broker who completed the assignment to retrieve accurate, current data. Because Lee & Associates Ontario has been part of the IE industrial brokerage community since 1987, every major brokerage firm in the market cooperates with our team. That access translates directly into more accurate valuations; we are not relying on a database that may be incomplete or delayed.

We are in the market every single day, with active listings, live buyer and tenant requirements, and direct relationships across the brokerage community. Our valuations reflect what is actually happening right now: which buildings are touring, which are receiving offers, and where pricing is landing in real time. In the IE industrial market, many listings are marketed unpriced or listed as TBD. We already have intelligence on where those owners are targeting and what kind of activity they are seeing at those levels. That real-time market pulse is built into every BOV we prepare, and it is not available on any comp database.

What We Look At

A true BOV starts with walking the building. Not every building is maintained equally, and physical condition matters significantly to value. We evaluate:

• Capital expenditure items: roof condition, parking lot, HVAC, dock equipment, and an honest assessment of remaining useful life
• Building specifications: clear height, dock-high and grade-level loading, power, zoning, and yard space
• Standalone vs. park or association: a freestanding building offers full owner control with no HOA, CC&Rs, or shared amenity constraints. A building within a business park or association trades differently, sometimes at a premium for amenities, sometimes at a discount for restrictions
• Building-to-land ratio: excess land adds value; constrained sites limit buyer and tenant flexibility
• Office percentage: high office finish can be a liability in a market driven by pure warehouse demand
• Asset class positioning: where does this building truly sit in the market hierarchy relative to competing inventory

Pricing industrial real estate on a straight-line price per square foot basis alone misses the point. Location, functionality, and building features drive real-world demand, and our valuations reflect that reality.

Owner-User & Vacant Buildings

The IE industrial market is one of the largest and most active in the country, and it moves. Owners often anchor to numbers they heard discussed at a different point in the cycle. Our job is not to validate a number; it is to show you what your building will actually trade for, what it will take to get it done, and what a realistic timeline looks like. If your expectations are supported by the data, we will tell you that directly. If they are not, we will show you why, and present your realistic options with clarity and without pressure.

Investment & Leased Buildings

For buildings with a tenant in place, valuation is driven by cap rate analysis, but the details matter significantly and the math is more nuanced than it appears. Cap rate positioning is determined by three factors: the quality of the physical asset, the creditworthiness of the tenant, and the structure and remaining term of the lease. A strong tenant on a long-term lease with favorable terms commands a tighter cap rate. A shorter lease, a weaker tenant, or lease terms misaligned with current market conditions will push the cap rate out, reducing value accordingly.

Two principles that always apply: First, always cross-check cap rate pricing against price per square foot. If a cap rate implies a price per square foot that exceeds where a comparable vacant building would trade to an owner-user, the market will find that ceiling. Cap rate and price per square foot must be reconciled against each other to arrive at a defensible number.

Second, lease terms relative to current market conditions significantly impact value. Above-market leases compress cap rates and enhance value. Below-market leases expand cap rates and suppress it. Understanding where your lease sits relative to today’s market, not just the rent on the page, is essential to accurate investment valuation.

One dynamic worth understanding: the spread between vacant user value and leased investment value shifts throughout real estate cycles. Knowing where that spread sits in the current environment, and which exit strategy maximizes your outcome, is a core part of what we bring to every investment BOV.

Considering a 1031 Exchange after your sale? Read our 1031 Exchange Guide →

Why It Matters Before You List

Whether you are actively considering a sale, evaluating a refinance, planning an estate, or simply want to understand your equity position, a BOV gives you the information you need to make a confident decision. No obligation, no pressure, and no commitment to list. The worst time to find out what your building is worth is after you have already made a decision based on the wrong number.

Frequently Asked Questions

This content is for informational purposes only and does not constitute legal or financial advice. Please consult a qualified professional before making any real estate decisions.