Commercial Properties Valuation

[Mac Caspersen]

I am starting to learn about commercial and multi family investing. I am pretty analytical and have owned and sold my own business in the past, so I have a good foundation for how the math and metrics should work.

My understanding is that commercial and multi family properties are valued as a function of NOI. I have looked at probably 2 dozen properties on loop net, and all of them seem to use comps to arrive at their list price (with a couple exceptions). These are all kinds of different commercial buildings from small office to retail to self storage.

What am I missing? Where are all the valuation calculations I’ve heard of and read about?