An Automated Valuation Model for Commercial Properties
In the commercial real estate industry, knowing the value of your assets is a critical component to managing risk and remaining profitable. In some situations, speed is imperative, and the time and cost of a full appraisal is not an option. That’s why we’ve partnered with Green Street to offer the most advanced, reliable, and data-rich CAVM in the commercial real estate industry.
Three Methodologies = Defensible Values
The Green Street AVM Pro produces instant value estimates and defensible value ranges grounded in three well-recognized commercial real estate methodologies:
Divides a forward-adjusted Net Operating Income by a property-specific cap rate derived from Green Street’s real-time database covering 384 markets. Cap rates are refined by zip code market grade, building quality, asking rents, weighted average lease term (WALT), tenant credit quality (investment-grade/non-investment-grade), and mark-to-market NOI delta.
Adjusts a prior sales transaction forward to the present using Green Street’s Commercial Property Price Index (CPPI)—widely recognized as the most accurate and timely CRE price index available. Quality-specific CPPI series are applied automatically based on the subject property’s quality profile.
A proprietary decision-tree algorithm that scores and selects the top comparable sales from Green Street’s verified transaction database, weighting for recency, proximity, pricing bands, and building size similarity. The top 10 comps are identified and scored; only those surpassing a predefined threshold are used in the valuation. All selected comps are brought current via CPPI before being weighted into the final estimate.
AVM Pro Report Features:
What Makes a Green Street AVM Pro Different?
Every input, adjustment, cap rate derivation, and methodology weight is visible and auditable. No black boxes—outputs you can present and defend.
Powered by Green Street’s CPPIs, a live cap rate database across 384 markets, and the SmartComps transaction algorithm—data refined over 35+ years.
Requires only five inputs to generate a value estimate and range. Runs across individual assets or entire portfolios in seconds.
Override dynamic methodology weightings, manually select comparable properties, and enrich inputs with optional fields to sharpen accuracy.
When to Use the CAVM:
Reach out to your CREtelligent representative or fill out the form on this page.
Frequently Asked Questions
Green Street’s AVM Pro is a tool that provides instant valuation estimates for commercial properties and portfolios.
The Commercial AVM offers multi-sector capability with coverage across Apartments, Industrial, Office, Retail, Senior Housing, and Self-Storage across 384 U.S. markets.
The CAVM was built around three accepted valuation approaches: NOI capitalization, value extrapolation, and sales comps.
The CAVM calculates a final valuation estimate by weighting the results of each approach through a confidence scoring system. Confidence in each approach is determined by a number of factors, including the number of provided model inputs. The emphasis on each valuation approach can therefore vary significantly from one property to another, depending on its unique characteristics and data availability.
The CAVM is fueled by Green Street’s proprietary data sets on cap rates, market grades, Commercial Property Price Indices (CPPIs), and a robust transaction comp database.
Green Street claims their CAVM delivers single-digit error rates for individual assets and low-digit error rates for portfolios.
Traditional commercial CAVMs lack accuracy and transparency because they are only as good as the data that drives them. Green Street’s CAVM relies on real-time data that is consistently updated and verified by their Research experts, ensuring that the inputs and outputs of the model are independent and unbiased.
It is a tool that requires as few as five user inputs, with optional fields for even greater precision. Users can further refine property valuations with additional inputs like building quality, weighted average lease term (WALT), tenant credit quality, NOI mark-to-market, and renovations. The model also offers flexibility by allowing users to adjust the valuation weightings.
Yes—the CAVM has the ability to value both stabilized and non-stabilized assets.
Portfolio Tools—which includes the AVM, Portfolio Analytics, and Loan Analytics — was developed to help guide capital allocation decisions, assess and quantify risk, and support portfolio lending decisions and strategy. It also helps users generate a third-party view on property valuations that is accurate, transparent, and defensible, and saves time by surfacing proprietary data on cap rates, sales comps, commercial pricing indices, and submarket grades for any location.
Commercial Real Estate professionals often require a fairly detailed vetting process in order to utilize a new vendor. We get it.
In order to make that process as simple and through for you as possible we have assembled a downloadable “Due Diligence Package” for you to start the ball rolling. As soon as you complete this quick registration form, you will be able to receive our Statement of Qualifications, Certificate of Insurance and our Current Customer Referral list.
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