A commercial broker opinion of value in Texas should include the property's net operating income, the cap rate applied to it and why, comparable sales and leases from local deal data, a review of the rent roll and leases, and a clear statement of assumptions. Because Texas does not publicly record sale prices, the comps section is where a good opinion of value earns its keep. The Agency Dallas prepares a broker opinion of value for owners, investors and their advisors across North Texas.
What is a commercial broker opinion of value?
A broker opinion of value, often shortened to BOV, is a licensed broker's estimate of what a commercial property would sell or lease for in today's market. Owners ask for one before listing, before refinancing, when weighing a 1031 exchange, when a partner wants out, or simply to know where they stand.
It is not an appraisal. An appraisal is prepared by a state-certified appraiser under federal and state standards and is what lenders rely on. A BOV is a market opinion from someone who sells and leases property, built to answer a business question quickly. For residential owners, our post on the difference between a CMA, a broker price opinion and an appraisal in Texas covers the home-side version.
Why does a BOV matter more in Texas?
Texas is a non-disclosure state. Sale prices are not recorded in public property records, so online estimates for commercial buildings are often guesses. Appraisal district values lag the market and are built for taxation. That puts the weight on brokers who know what similar buildings actually traded for.
Market context matters too. CBRE's H1 2026 U.S. Cap Rate Survey, published in August 2026, put the all-property cap rate near 6.6 percent and flat for the half, with the sharpest disagreement around lower-tier office. When the market is that split, a generic estimate is risky. We explain the pricing side in more depth in how to price a commercial property in Texas when sale prices are not public.
What should a commercial broker opinion of value include?
A complete BOV from The Agency Dallas covers these parts:
- Property summary. Address, building and land area, year built, zoning, parking, condition and any deferred maintenance.
- Rent roll and lease review. Each tenant's rent, term, renewal options, escalations, and who pays taxes, insurance and maintenance.
- Operating statement. Trailing 12-month income and expenses, with one-time items called out.
- Net operating income. Both the actual NOI and a normalized NOI using market vacancy and expenses.
- Cap rate selection. The rate applied, the range it came from, and the reasons for where it sits in that range.
- Comparable sales. Recent trades of similar buildings, with the source of each data point noted.
- Comparable leases. Market rents for similar space, which tell you whether in-place rents are above or below market.
- Value range and recommended list price. A range, not a single number, plus a pricing strategy.
- Assumptions and limits. What was verified, what was provided by the owner, and what was not inspected.
How is a cap rate chosen for a Dallas-Fort Worth property?
Value on an income property is roughly NOI divided by the cap rate. A building producing $500,000 of NOI is worth about $7.7 million at a 6.5 percent cap and about $6.7 million at 7.5 percent. One point of cap rate moves value by about a million dollars, which is why this section deserves real explanation.
Factors that push a cap rate up or down:
- Tenant credit. A national tenant on a long lease supports a lower cap rate than a local tenant month to month.
- Lease term remaining. Short remaining terms add rollover risk.
- Location and submarket. Tight submarkets like Preston Center trade differently than areas with high vacancy. See what it costs to lease office space in Preston Center.
- Building age and capital needs. A roof or HVAC replacement in the next few years lowers value.
- Property type. Industrial, retail, multifamily and office each trade in their own ranges.
What documents should an owner send for a BOV?
The more complete the file, the tighter the range. We ask for:
- current rent roll,
- copies of all leases and amendments,
- trailing 12-month and prior-year operating statements,
- the most recent property tax statement and any protest history,
- a list of capital improvements in the last five years,
- any survey, environmental report or property condition report on file.
Property taxes deserve a look of their own because they flow straight into NOI. Our guide to how commercial property tax protests work in Texas explains the process.
How is a BOV different for land and development sites?
Land usually has no income, so cap rates do not apply. A land BOV looks at comparable land sales, zoning and allowed density, utility availability, access and frontage, floodplain, and what a developer could build and sell. For sites in growing corridors, see where the path of growth is for commercial land in Collin County and our checklist on how to evaluate a development site in North Texas.
When should you get a broker opinion of value?
- six to twelve months before a planned sale,
- before starting a 1031 exchange, so you know your target purchase size. If you are already in one, read what happens if you miss the 180-day deadline in a 1031 exchange,
- when a major tenant's lease is coming up for renewal,
- when partners or heirs need a starting point for a buyout conversation,
- when an unsolicited offer arrives and you want to know whether it is fair.
Frequently asked questions
What is a broker opinion of value for commercial property?
It is a licensed broker's estimate of what a commercial property would sell or lease for today, based on its income, cap rates, comparable sales and comparable leases. Owners use it before selling, refinancing, starting a 1031 exchange or negotiating a partner buyout. It is a market opinion, not an appraisal, and lenders generally require a certified appraisal for loans.
Is a broker opinion of value the same as an appraisal in Texas?
No. An appraisal is prepared by a state-certified appraiser under formal standards and is what lenders rely on. A broker opinion of value comes from a licensed broker who sells and leases property and is built to answer a business question, such as list price or whether an offer is fair. Many owners get a BOV first and an appraisal only when financing requires it.
How do you value commercial property in a non-disclosure state?
Texas does not record sale prices publicly, so value comes from net operating income, a supported cap rate and comparable sales gathered from brokers' own closed deals and networks. Comparable leases show whether in-place rents are at market. Appraisal district values and online estimates are a weak substitute because they are built for taxation or rely on incomplete data.
What documents do I need for a commercial BOV?
Send the current rent roll, all leases and amendments, trailing 12-month and prior-year operating statements, the latest property tax statement, a list of recent capital improvements, and any survey or environmental report. The more complete the file, the narrower and more reliable the value range The Agency Dallas can give you.
How long does a commercial broker opinion of value take?
It depends on the property and how quickly documents arrive. A single-tenant building with clean records moves faster than a multi-tenant center with dozens of leases to review. The Agency Dallas replies to commercial requests within one business day and sets a delivery date once we see the rent roll and operating statements.
Sources: CBRE, U.S. Cap Rate Survey H1 2026 (August 2026). Example values are illustrative math, not a valuation of any property.
To request a broker opinion of value, visit the Commercial Division of The Agency Dallas.
