Most investors only care about the asking price when buying office space or other commercial property. They don’t think about how much it will cost them to be wrong. Yet a professional office appraisal can deliver 10x ROI — not by magic, but by preventing six-figure mistakes.
A good office appraisal will help you understand the fair market value, potential rental income, risk of tenant turnover, and resale potential. An appraiser uses real market data, lease performance, and comparable office sales to determine a property’s actual value, rather than relying on seller figures or online estimates, which are usually off by 12–25%.
It is especially important in cities with many offices, like Toronto, Vancouver, Calgary, or Ottawa, where overvaluation can cost hundreds of thousands of dollars or even kill your cash flow for years due to hybrid work shifts and spikes in vacancy rates.
Why 87% of Failed Office Deals Are Due to Bad Valuations
The 2025 Canadian CRE Report from Altus Group says that 87% of troubled office sales in 2024 were caused by prices that were too high. Who did it? There is no independent office appraisal.
A professional office appraisal will find things that other seller’s broker will never find:
Real Cap Rate vs. What Was Advertised
If you make changes to the office’s hybrid vacancy rate, the cap rate could go from 6% to 8.2%.
Tenant Risk Score:
Is that “anchor” tenant on a month-to-month lease?
Zoning Traps:
Is it really possible to change to medical or co-working? See the MPAC guidelines at our company.
Did the Phase I ESA miss any environmental red flags? You’re responsible
Lost tenants because the parking ratio was 1:250 instead of the required 1:180.
How One Office Appraisal Saved $420K (and a Portfolio) in Real Life
Based on the seller’s “pro forma” NOI of $220K, an investor from Calgary almost bought a $2.8 million medical office building.
Aion Appraisals came in.
Their office appraisal, which followed CUSPAP rules, showed that two tenants would be leaving in six months (but they didn’t tell anyone).
• The parking ratio is 28% below what it should be.
• Actual NOI: $148,000; True value: $2.38 million
What happened? Negotiated down to $2.4 million plus $80,000 in seller credit. Total savings: $420,000.
That’s why smart investors use Aion Appraisals for office and commercial appraisals: lenders, brokers, and business owners all over Canada trust their reports.
The 5 Hidden ROIs of a Pre-Purchase Office Appraisal
1. Negotiation Leverage:
“Your asking price is 18% higher than the market.” Here are the office comps.
2. LTV Approved by the Bank:
Lenders accept Aion office appraisals, which means lower interest rates.
3. Tax Appeal Ready
Use the same report to ask the MPAC office to look at your case again.
4. Make sure your insurance is accurate;
don’t under-insure the cost of replacement.
5. Proof of Exit Strategy:
Three years from now, buyers will pay you the appraised value of your office, not less.
One office appraisal for $2,500 means a lifetime return on investment of more than $250,000.
When to Order Your Office Appraisal: A Timeline Checklist
| Deal Stage: | Action |
| LOI Signed | Order an office appraisal within 48 hours. |
| Due Diligence | Get report on Day 12–15 |
| Financing | Send to bank Day 18 |
| Closing | Use for last-minute talks |
What It Will Cost You to Skip This Step
Without a third-party office appraisal, the Colliers Canada Q3 2025 Report says that office properties in the GTA paid 14% too much on average.
One investor in Vancouver lost $1.2 million when they bought an office for $320 per square foot. After the sale, the office was worth $260 per square foot.
What You Should Do Next
- An unbiased office appraisal helps you get better terms, avoid paying too much, and find opportunities that other people miss.
- Before signing the deal, visit Aion Appraisals and get a professional office appraisal that can secure your financial future.
- Don’t gamble your capital. Get the office appraisal that pays for itself 100x over. Book your free consultation now.
