Commercial Real Estate Appraisal
in Honolulu & Across Hawaiʻi
As a commercial real estate appraiser in Honolulu, The Benavente Group values office, retail, industrial and hospitality properties for lenders, owners, attorneys and government agencies. Our MAI and SRA designated appraisers deliver defensible, USPAP-compliant reports built on island-market evidence, not mainland assumptions.
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Local Knowledge of
Every Island Market
Since 2017, our team has served commercial property owners, lenders and attorneys on Oʻahu, Maui, Kauaʻi and Hawaiʻi Island, and in Guam, Saipan and the Marshall Islands. Our appraisers know these markets first-hand: which sales were arm's-length, which leases carry unusual terms, and where county records tell a different story from the listing. That local depth is why clients return to us assignment after assignment.
Valuations Relied On by
Lenders, Owners and Counsel
| Client | How we help |
|---|---|
| 01Lenders and credit officers | How we helpCommercial appraisals for acquisition, refinance and construction financing, prepared to the standards bank reviewers expect. |
| 02Owners and investors | How we helpValues to buy, sell, hold, settle partnership buyouts and prepare for ground lease rent reopenings. |
| 03Attorneys | How we helpValuation support for transactions, written to be read closely by the other side. |
| 04Government agencies | How we helpAcquisition, disposition and leasing decisions on public land and facilities. |
Commercial appraisals serve many purposes, and the purpose shapes the work. A financing appraisal must satisfy the lender's engagement requirements and federal regulations. An acquisition appraisal must test the price a buyer is about to pay. A ground lease rent reopening needs a defensible land value and market rent. We confirm the intended use at the outset, so the report answers the question you actually need answered and holds up to the person who will read it.
Common purposes include
- Acquisition and disposition
- Refinance and construction lending
- Partnership buyouts and dissolutions
- Ground lease rent reopenings
- Insurance replacement cost
- Financial reporting
- Internal asset management
- Pre-listing pricing
Every Major Commercial
Property Type in the Islands
| Property type | What we value |
|---|---|
| 01Office | What we valueMulti-tenant, medical and owner-occupied office buildings, CBD and suburban |
| 02Retail | What we valueShopping centers, street retail, neighborhood centers, single-tenant net lease |
| 03Industrial | What we valueWarehouses, distribution and flex space, industrial land |
| 04Hotel & hospitality | What we valueResort and select-service hotels, Pacific island hospitality assets |
| 05Mixed-use & multifamily | What we valueGround-floor commercial with residential above, apartment buildings |
| 06Land & agriculture | What we valueDevelopment land, agricultural land, leased fee land under ground lease |
| 07Special purpose | What we valueLimited-market properties that need a tailored approach |
Each assignment is scoped to its purpose: the interest valued (fee simple, leased fee or leasehold), the date of value, and the report type the intended user needs. Not sure which report you need? Read our guide to the types of appraisal reports.
How We Arrive at a
Defensible Value
Every commercial appraisal considers three recognized approaches to value. We develop each one the property and its market can support, then reconcile them into a single conclusion. The report explains why one approach carries more weight than another.
| Approach | How we develop it |
|---|---|
| 01Income capitalization approach | How we develop it Value follows the income an investor can expect. We test the rent roll against market rent, estimate vacancy and expenses, and arrive at net operating income, capitalized at a cap rate from Hawaiʻi transactions or projected in a discounted cash flow. Ground rent, common area maintenance and percentage rent are modeled explicitly. |
| 02Sales comparison approach | How we develop it We compare the property with recent sales of similar properties, adjusting for location, size, age, condition, tenancy and property rights. Island markets rarely offer a deep set of perfect comparables, so we widen the search across time and submarkets, verify sales where possible, and explain every adjustment so a reviewer can trace it. |
| 03Cost approach | How we develop it For newer buildings, special-purpose property and insurance replacement cost, we estimate the cost to replace the improvements, deduct depreciation and add land value. Construction costs in Hawaiʻi run well above mainland averages, higher still on neighbor islands, so local data matters. See our guide to the cost approach. |
Fee Simple, Leased Fee
and Leasehold
The same building can have very different values depending on which interest is being appraised. In Hawaiʻi, this distinction comes up more often than almost anywhere else in the country.
| Interest | What it means | Typical client |
|---|---|---|
| Fee simple | What it meansFull ownership, unencumbered by leases | Typical clientOwner-users, lenders on vacant or owner-occupied property |
| Leased fee | What it meansThe landlord's interest, subject to existing leases or a ground lease | Typical clientLandowners, trusts, ground lessors, investors buying income |
| Leasehold | What it meansThe tenant's interest under a lease, including the right to occupy and any rent advantage | Typical clientGround lessees, building owners on leased land, their lenders |
Where a building sits on ground leased land, we analyze the remaining lease term, rent reopening dates, surrender clauses and reversion. These terms can move value significantly in either direction. See our ground lease and leased fee valuation services for more. Our guide to fee simple vs leasehold covers the basics.
What Mainland Models
Miss in Hawaiʻi
Commercial property in Hawaiʻi doesn't value like the mainland. Three issues come up in almost every assignment.
- 01
Thin comparable data
Few sales trade on each island in a given year. We extend searches across time and submarkets, reconcile carefully, and explain every adjustment so a reviewer can follow it.
- 02
Leasehold and ground leases
Much of Honolulu's commercial land is held under long-term ground leases. Valuing the leased fee or leasehold interest correctly, including rent resets and reversion, changes the answer materially.
- 03
Site-level surprises
Use restrictions, easements and county records often only surface on the ground. Our team inspects in person, photographs by drone, and checks with county departments before we conclude a value.
Commercial Appraisal
Across Every Island
City and County of Honolulu
Downtown and Kakaʻako office and mixed-use, Waikīkī hotels and street retail, Kapolei and Central Oʻahu industrial and commercial property, and agricultural land.Maui County
Resort and visitor-oriented commercial property in West and South Maui, and Kahului's industrial and retail core.Hawaiʻi Island
Hilo and Kona commercial districts, resort-area retail, and agricultural and ranch land.Kauaʻi
Līhuʻe commercial and industrial property, visitor-oriented retail and hospitality, and land.Guam, Saipan and the Marshall Islands
Hospitality, retail and leased property, where local data is scarce and on-site inspection matters.
The Right Report for
the Intended Use
USPAP recognizes two written report options: an Appraisal Report and a Restricted Appraisal Report. Lenders, courts and agencies generally require the full narrative Appraisal Report. A restricted report can suit internal decisions where the client is the only intended user. We also prepare updates of our own earlier appraisals and reviews of appraisals prepared by others. We'll recommend the report type that fits your purpose, without overbuilding the assignment or leaving out what a reviewer will expect.
From Engagement to
Final Report
- 01
Scope
We confirm the purpose, intended use, interest appraised and date of value, then issue an engagement letter with fee and delivery date. - 02
Inspect and research
Site inspection, drone photography, lease and operating-statement review, and county records research. - 03
Analyze
We apply the income, sales comparison and cost approaches as the property warrants, with reconciled support for each. - 04
Deliver
A clear, USPAP-compliant report on the agreed date, with the appraiser available to answer reviewer questions.
What You Receive
- A clear statement of the value conclusion, the interest appraised and the effective date
- A description of the property, site, zoning and improvements, with photographs and drone imagery
- A market overview for the island and submarket
- A highest and best use conclusion supporting the valuation
- Each approach to value developed, with comparable data and adjustment grids
- A reconciliation explaining how the final value was reached
- Assumptions, limiting conditions and the appraiser's USPAP certification
What Affects Fee and Timing
Fees and delivery dates depend on the property type, size and complexity. The number of tenants and leases, the interests being valued, the report type and the location all play a part. A single-tenant net lease building on Oʻahu is a very different assignment from a multi-tenant shopping center under a ground lease on a neighbor island. We provide a written fee and delivery date in every engagement letter.
What Our Clients Say
My review is completed. Firstly, I would like to state that the report format and the substance & content of this report is one of the best I've seen in 30+ years of appraisal reviews.
Frequently Asked
Questions
- It depends on the property's complexity and how quickly leases and operating data arrive. We confirm a delivery date in the engagement letter before work begins. Our guide on how long a commercial real estate appraisal takes explains what drives the timeline.
- MAI is the Appraisal Institute's designation for appraisers experienced in commercial and income-producing property. Lenders, courts and government agencies often require or prefer MAI appraisers. Our three principals hold both the MAI and SRA designations.
- Yes. Ground lease interests are routine in Honolulu, and we value the leased fee, the leasehold, or both, as the assignment requires.
- Current rent roll and leases, three years of operating statements, any recent capital improvements, site plans, and prior appraisals if available.
- Yes. We appraise commercial property in all four Hawaiʻi counties, Guam, Saipan, the Marshall Islands and other Pacific islands.
- Lenders generally order commercial appraisals directly or through their own approved panels. If your lender needs to engage us, we work with their requirements and engagement letter. Ask your lender before ordering, so the report is addressed to the right intended user.
- Yes. We value properties as is and, where requested, prospectively upon stabilization or completion of repairs, so the client can see both the current and expected value.
- An appraisal is an independent, USPAP-compliant opinion prepared by a credentialed appraiser with no stake in the transaction. A broker opinion is a pricing estimate from a licensee who may be marketing the property. Read our comparison of a broker opinion of value vs an appraisal.
- Yes. We value vacant and underutilized land, including land under ground lease. See our guide on how to value vacant land.
Discuss Your
Assignment With Us
Tell us about the property, the purpose and your timeline. We will respond promptly with scope, approach and next steps.
Prefer to talk? Call (808) 784-4320