Office, Retail, Industrial, Mixed-Use. What Is It Worth?
Value your commercial property using cap rate analysis. See your full tax exposure including depreciation recapture, net proceeds, and whether to sell, hold, 1031 exchange, or sale-leaseback.
Your commercial property details
NOI-based valuation with full tax exposure and exit strategy comparison.
Gross rents minus operating expenses. Do not subtract mortgage.
Ask a local commercial broker for current market cap rates.
Commercial property depreciates over 39 years at 2.564%/year
Hold vs. sell assumptions
Estimated Market Value
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NOI ÷ cap rate
Net Proceeds at Sale
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After all taxes & costs
Depreciation recapture tax
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At 25% rate
Capital gains tax
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On gain above depreciation
Current cap rate (your NOI)
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At current value
5-year projected value
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At forecast cap rate
Full Tax & Proceeds Breakdown
Estimated market value (NOI / cap rate)
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Less: selling costs
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Less: mortgage payoff
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Adjusted cost basis
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Total gain
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Depreciation recapture tax (25%)
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Capital gains tax
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Net proceeds at sale
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Exit Strategy Comparison
Sell now — net proceeds
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1031 exchange — tax deferred
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Hold 5 years — projected equity
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Sale-leaseback option
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Recommended strategy
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Defer your tax with a 1031 exchange. See how much tax you defer and what replacement property your equity can buy.