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March 15, 2023

Four Ways to Safeguard the Value of Your Construction From a Market Drop

By Partner ESI

Understanding the Factors that Determine Construction Project Value

As with existing commercial real estate assets, assets in a pre-construction or construction phase require valuation for capital raising purposes, whether funds are to be borrowed or raised via equity investors. Unlike existing assets, however, construction projects lack financial history to demonstrate value—there’s no rent roll, leases, or income statements for an appraiser to review. How, then, do commercial valuation consultants place a value on a construction project?

In this article, Eric Enloe, Partner Valuation Advisors, discusses how to evaluate and protect a construction project’s value.

About the Authors

Partner ESI

Partner ESI

Partner Engineering & Science, Inc. is a full-service engineering, environmental, and energy consulting and design firm with over 1,000 professionals with experts based in locations throughout in the United States, Canada, Caribbean & Latin America (CALA), and Europe. As industry leaders in due diligence assessments, they bring over 100 years of collective experience to complex engineering challenges and risk management in commercial real estate and development. Founded on technical excellence and client service, Partner's team includes licensed Professional Engineers, Environmental Professionals, Geologists, Architects, LEED Accredited Professionals, and other credentialed specialists who provide comprehensive solutions across the real estate lifecycle. Their deep expertise spans environmental site assessments, property condition assessments, seismic risk analysis, construction risk management, industrial hygiene, energy efficiency consulting, regulatory compliance, and more.

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