By TAG Industrial, part of Marcus & Millichap.  Market data as of Q3 2026.A broker opinion of value (BOV) is a broker’s written estimate of what an industrial property is likely to sell for, built on comparable sales, lease data and current market conditions. It is not an appraisal. The Texas Appraiser Licensing and Certification Board states that a broker’s price opinion is not an opinion of market value, which is why owners use a BOV to plan a sale and an appraisal when a lender or court requires one. TAG Industrial, part of Marcus & Millichap, provides opinions of value through its industrial investment sales team.

What a BOV is and is not

The definition

A BOV answers a practical question: where should this building be priced if we take it to market? It reflects how buyers are underwriting similar assets today, including lease terms, vacancy, rent levels and investor return expectations.

BOV vs appraisal

The TALCB explains that an appraisal is an opinion of value that can only be completed by a licensed or certified appraiser who follows the Uniform Standards of Professional Appraisal Practice (USPAP). A broker’s price opinion estimates a likely sale price, is performed by licensed brokers or sales agents, and is not subject to USPAP development standards. In Texas, the Texas Real Estate Commission regulates these opinions and requires a disclaimer that it represents an estimated sale price.

When each is used

Appraisals are used in mortgage lending, court proceedings and asset management. A BOV is a pricing and strategy tool for an owner who is deciding whether, when and how to sell. If you need a document for a lender, ask the lender what they require.

Want to know where your building would price? Request a confidential BOV from TAG Industrial, or call (972) 755-5223.

What goes into an industrial valuation

Comparable sales and leases

Sales of similar buildings show what investors paid; lease comparables show what tenants pay. Size, clear height, dock doors, power, yard space, age and location all affect which comparables are relevant. A small-bay building and a large distribution warehouse are priced against different sets of comparables.

Income and the cap rate

For a leased building, value is closely tied to net operating income and the cap rate investors apply, with a lower cap rate producing a higher value for the same income. The Boulder Group reports the national asking cap rate for single-tenant net lease industrial was 7.28% in Q3 2026, up from 7.25% in Q2, and that overall net lease cap rates were at their highest level in over a decade (Q3 2026 report). Local cap rates vary with tenant credit, lease term and submarket, so a current BOV matters more than any national average.

The building and the tenancy

Remaining lease term, rent escalations, tenant credit, whether in-place rent is above or below market, and deferred maintenance can each move value. For an owner-occupied building, the question may be how value changes under a sale-leaseback or a vacant sale.

How markets shape value in Texas

Dallas-Fort Worth industrial valuation

Asking rents in Dallas-Fort Worth rose 19.9% year over year in Q3 2026 and vacancy fell to 7.3%, the lowest since Q3 2023 (Cushman & Wakefield). Fast rent growth means recent lease comparables matter and that buildings with leases below market may carry upside. Cushman & Wakefield projects year-end vacancy near 6.6%.

Houston industrial valuation

Houston asking rents rose 5.0% year over year with vacancy flat at 6.3% and strong absorption of 7.3 million sq ft in the quarter (Cushman & Wakefield). Because the Northwest and North submarkets hold 56.2% of the pipeline, submarket-specific comparables are important.

Austin and San Antonio industrial valuation

Austin asking rents were down 0.7% year over year (Cushman & Wakefield), while San Antonio rents rose 3.1% and vacancy fell to 10.6% (Cushman & Wakefield). Flat or softer rent trends make the strength of the lease more important to value.

How markets shape value in Chicago and Denver

Chicago industrial valuation

Chicago vacancy has held at 4.7% for four straight quarters, and asking rents rose 3.9% year over year, with the I-80 Corridor up 32.7% (Cushman & Wakefield). Submarket rent growth varies widely, so a valuation should rely on comparables from the same corridor.

Denver industrial valuation

Denver direct vacancy was 7.1% in Q3 2026, the lowest since Q1 2024. Cushman & Wakefield attributes recent rent increases mainly to new Class A supply rather than stronger demand, and about 1.4 million sq ft of speculative space is due by year-end (Cushman & Wakefield). Older buildings should be compared with older buildings.

What to look for in a BOV

Supporting data

A useful BOV lists the comparables it relies on, explains why they are comparable and shows the as-of date for each. If it cannot, treat the number with caution.

A pricing range and assumptions

A BOV may provide a range, not a single number, with stated assumptions about lease terms, vacancy and exit conditions. The range shows how sensitive the result is to market changes.

A strategy, not just a number

The best BOV compares paths: sell vacant, sell leased, sell with a leaseback or exchange into other property. Our guide on how to sell an industrial building explains what follows.

Industrial valuation and BOV FAQs

BOV basics

What is a BOV in commercial real estate? A broker’s written opinion of the likely sale price of a property, based on comparable sales, leases and market conditions.

Is a BOV the same as an appraisal? No. An appraisal is by a licensed or certified appraiser under USPAP, while a BOV is a broker’s estimate of sale price.

Who can prepare a BOV? In Texas, a licensed broker or sales agent, and these opinions are regulated by the Texas Real Estate Commission.

Using a BOV

Can I use a BOV for a bank loan? Ask your lender. Appraisals are used in mortgage lending, so a BOV is generally a pricing tool for sellers.

How often should I update it? When your lease, market or plans change. Market data moves each quarter.

Talk to TAG Industrial

Request a confidential BOV

Contact our team or call (972) 755-5223 for an opinion of value on your industrial building.

See what is trading now

Browse TAG Industrial properties and follow our weekly Industrial Watch for market updates.

Sources: Texas Appraiser Licensing and Certification Board; The Boulder Group Q3 2026 Net Lease Report; Cushman & Wakefield MarketBeat Q3 2026 for each market, linked above. A BOV is not an appraisal. TAG Industrial and Marcus & Millichap are not qualified to provide legal, financial or tax advice; consult your attorney, accountant or tax professional.