First, is the building 100% leased? If so, the building should be valued based on the income. I see several answers here that reference NOI but don't explain what that is. NOI is the Net Operating Income which is determined by taking the Gross Income and subtracting operating expenses paid by the landlord such as property taxes, property insurance, property management fees, landscaping, common area lighting, garbage removal, etc. Do not include your debt service (i.e. - mortgage payment). Once you have determined what the NOI is, divide it by the Cap Rate (rate of return) that an investor would expect to receive if they bought it. The answer is the Sales Price.
If the building is not leased, you will need to input an expected rental rate instead, and use the same formula - NOI / Cap Rate = Sales Price.
May 4, 2015