Commercial Value is determined by calculating the NOI (Net Operating Income), and divide by a market cap rate based upon your geographic location, and average cap rate that similar facilities in or product type have traded recently. 

I am new to the real estate investing and I am trying to learn as much as possible so I can decide my niche, my geographic area (farming area) and put together a strategic plan.

Do you make any assumptions based on such things as the age of the house or the geographic region where the property is located?

Some will prefer certain geographic areas, some will prefer certain types of projects, some will prefer certain types of borrowers.

@Jered Sturm WOW, that was an AWESOME explanation.

Once you see the charts and read the explanations of them, it is much easier to envision a path forward and see your end goal.

and Matt Motil for your explanations.

The system makes no sense but your explanation of it is great.  

@Jason Bott, did that help as an explanation?

The only time that a rental that wasn't placed in service (advertised for rent) in the current year would go on your return is if you were investing in the same geographic location as your other rentals.