Frequently Asked Questions
Get answers to common questions about commercial property appraisals in Ontario
What does AACI stand for?
Accredited Appraiser Canadian Institute. It is the Appraisal Institute of Canada's designation for appraising all property types, including commercial, industrial, land and agricultural property. Read our full guide to the AACI designation.
What is the difference between an AACI and a CRA appraiser?
A CRA appraiser is qualified for residential property only: homes, condominiums and buildings of up to four units. An AACI appraiser can appraise any property type, which is why commercial assignments go to an AACI.
Is a commercial appraisal the same as a business appraisal?
No. A commercial appraisal values the real estate: the land and the building, whoever occupies it. A business appraisal, usually called a business valuation, values the operating company: its earnings, goodwill, equipment and contracts. It is prepared by a Chartered Business Valuator, not a real estate appraiser. Aion values the property. When a business is sold together with its building, the two are valued separately, and the property appraisal is the part we provide.
Do I need an AACI appraiser for a commercial property?
Yes, if you want an Appraisal Institute of Canada member. Commercial property is outside the CRA designation, so within the Institute it is AACI work.
How do I check that an appraiser holds the AACI designation?
Search the Appraisal Institute of Canada's Find an Appraiser directory by name or city. Every Aion report is signed by an AACI-designated appraiser, led by Ashita Chandra, AACI, P.App.
How fast can you deliver a commercial real estate appraisal?
Most commercial appraisals are delivered 5–10 business days after the site visit, depending on property complexity and the availability of comparable sales data. Rush service may be available for urgent financing deadlines — ask when you request a quote.
What types of commercial properties do you appraise?
We specialize in all commercial property types including office buildings, retail centers, industrial facilities, multi-unit residential, and special-purpose properties across Ontario's commercial real estate markets.
What's included in your appraisal fee?
Our commercial appraisal fee includes the full appraisal report, unlimited lender clarifications, and revision support if needed. No hidden charges or surprise fees for commercial real estate valuations.
What is a commercial real estate appraisal and why do I need one in the GTA?
A commercial real estate appraisal is an independent professional opinion of market value for properties like industrial units, retail plazas, office buildings, mixed-use developments, and development land. In the GTA commercial market it's commonly required for financing, purchase/sale transactions, partner buyouts, estate planning, tax appeals, and litigation support.
Which professional standards apply to commercial appraisals in Ontario?
In Ontario, commercial real estate appraisals follow CUSPAP (Canadian Uniform Standards of Professional Appraisal Practice). Most lenders and law firms prefer commercial appraisal reports signed by an AACI, P.App designated appraiser for reliability and professional standards compliance.
What valuation approaches are used for commercial income properties?
For commercial income-producing properties, we typically use the Income Approach (direct capitalization or discounted cash flow), the Sales Comparison Approach using comparable commercial sales, and sometimes the Cost Approach for newer or special-purpose commercial assets. The final commercial property value reconciles the evidence from each approach that's relevant and reliable for the specific property type.
How are cap rates determined in the GTA?
Cap rates come from recent sales of comparable GTA properties, adjusted for location, tenant quality, lease terms, building condition, and risk. Appraisers also cross-check with market surveys, active listings, and lender sentiment.
What's the difference between market rent and contract rent?
Contract rent is what tenants actually pay under their leases. Market rent is what the space would rent for today. If contract rent is far above or below market, the appraiser analyzes the impact on income, risk, and value.
How do you calculate Net Operating Income (NOI)?
NOI = Potential rent (at market or contract) minus vacancy/credit loss, plus other income, minus operating expenses that a typical owner pays. In GTA net leases, recoveries (TMI/CAM) are treated carefully to avoid double counting.
What vacancy rate do you use?
Appraisers use a stabilized market vacancy and credit loss based on local GTA evidence for that property type and node, not just the subject's current occupancy. If current vacancy is temporary or atypical, that's addressed with assumptions or an "as-stabilized" analysis when needed.
What documents should I provide to expedite my commercial appraisal?
To speed up your commercial real estate appraisal: Rent roll, copies of all leases and amendments, recent operating statements, realty tax bills, utility data, site plan and floor areas, environmental and building reports (Phase I ESA, PCA), surveys, zoning information, any recent capital improvements, and purchase/offer documents if applicable. Complete documentation ensures accurate commercial property valuation. Documents are requested at step 8 of our appraisal process.
How long does a commercial appraisal take?
A typical small industrial or retail unit can be 5–10 business days once we have access and documents. Larger or complex assets, portfolio work, or development land can take longer. Rush service may be available subject to scope. You can see every stage, and where the time goes, in our appraisal process.
How much does it cost?
Fees depend on property type, size, complexity, data availability, and purpose (financing, litigation). A short letter update costs less; a full narrative with inspections, lease reviews, and models costs more. You'll get a written quote up front. See what drives the fee on our commercial appraisal cost page.
How long is an appraisal "good for"?
Lenders in the GTA often accept reports for 60–120 days from the effective date of value, but policies vary. After that, many will ask for a letter update or re-inspection if market or tenancy changed.
