1. Walls or business: what will actually be valued?
It is the first question, and the one most often forgotten. Two distinct assets coexist in an operating commercial premises:
- The walls — the property proper: walls, surface, structure, and above all physical location. This is the object of a property appraisal, which determines the market value of the built unit.
- The business (fonds de commerce) — the trader's asset: clientele, goodwill, sign, leasehold right, equipment, stock. Its value depends on the activity and turnover, and falls under a commercial valuation, distinct from the appraisal of the walls.
The confusion has concrete consequences: buying the walls of an occupied unit does not give the business operated within it, and buying a business does not make you the owner of the walls. A serious appraisal frames its scope from the outset — what is valued, what is not — exactly as our Casablanca real estate appraisal guide recalls. This article covers the valuation of the walls.
2. In Casablanca, location decides almost everything
For a home, surface and quality explain most of the value. For a commercial premises, the logic reverses: it is the ability to capture footfall and generate turnover that prevails, well before the raw surface. In Casablanca, the hierarchy of locations is particularly marked from one artery to another, and even from one pavement to the other.
- Location no. 1 / 1bis / 2. No. 1 is the best commercial position on an axis: maximum pedestrian flow, visibility, proximity to attractive brands. 1bis designates a very good position just set back, no. 2 a correct but secondary location. The value gap between a no. 1 and a no. 2 on the same street is considerable.
- Frontage length and visibility. The wider the street frontage, the more commercially powerful the unit: extended shopfront, legible sign, easy access. A corner unit, exposed on two streets, benefits from a visibility premium. At equal surface, a unit « all frontage » is worth markedly more than one « all depth ».
- Footfall and the nature of the catchment. Transit axis, office district, dense residential neighbourhood, proximity to a market or a transport hub: the composition of the passing trade determines the viable activities and the achievable rent.
This is why applying a « neighbourhood average » price per sqm to a commercial premises is the most costly mistake. Price levels vary strongly between Maarif, Anfa and the other hubs, but within a single neighbourhood the dispersion between locations is immense. Any district range remains indicative: for an exact value, only the on-site appraisal gives a reliable marker.
3. Weighted surface: never crudely add up the sqm
Comparing two units on their total surface alone makes no sense: not all square metres are equal. The expert brings heterogeneous surfaces back to a weighted commercial surface, assigning each zone a coefficient according to its use value:
- Shopfront and frontage: the highest coefficient — first-rank sales surface.
- Depth and back-shop: a decreasing coefficient as one moves away from the street.
- Mezzanine: a reduced coefficient, modulated by accessibility and actual use (sales, storage, office).
- Basement and reserves: an even lower coefficient, a function of access and usability.
These coefficients are not fixed by a universal scale: they fall under the expert's professional judgement, justified in the report. It is the same homogenisation principle detailed for a ground-floor unit in our article on valuing a ground-floor retail unit. Weighting then allows units of very different configurations to be compared on a comparable basis.
4. Two complementary approaches: comparison and capitalisation
Once the surface is weighted and the location qualified, two methods lead to the value of the walls. They do not exclude each other: a rigorous appraisal cross-checks them.
Direct comparison (market approach). One relies on recent transactions of comparable units — same type of axis, similar location, close configuration — adjusted for the differences (frontage, depth, use). It is the natural approach for a vacant unit, intended to be occupied by its buyer or re-let at the market price.
Capitalisation of the rental value (income approach). One starts from the net market rent of the unit and applies a capitalisation rate representative of the segment and the risk, according to the formula: value = net annual income ÷ capitalisation rate. This is the approach required for an occupied unit or one bought as an income investment, where the buyer reasons in yield. The choice of rate is decisive; its orders of magnitude and the factors that move it are detailed in our cap rate guide for commercial real estate.
5. Occupied unit: the impact of a 49-16 lease and the leasehold right
The tenancy situation can change everything for the value of the walls. A unit occupied by a trader holding a lease subject to law 49-16 (law on leases for commercial, industrial or artisanal use, of 18 August 2016) benefits from a protective status: right to renewal and, if refused, an eviction indemnity for the tenant. The buyer of the walls will not freely recover the unit.
Two parameters then weigh on the value:
- The in-place rent relative to the market rent. If the contractual rent is far below the market rent, the capitalised gap constitutes a leasehold right in the tenant's favour. This intangible element, attached to the business, reduces the value of the walls by as much for the landlord, who receives an income below the property's potential.
- The theoretical cost of recovery. Recovering the unit assumes, save serious and legitimate grounds, paying an eviction indemnity. This latent cost must be factored in by a buyer contemplating operating themselves.
The full legal framework — duration, renewal, revision, eviction indemnity, leasehold right — is covered in our guide to the 49-16 commercial lease. For valuation, the rule is simple: an occupied unit is valued by capitalising the actual in-place rent, factoring in the effect of the protective status, and not as if it were vacant.
6. Rental value, the crux of the valuation
Whether one capitalises an income or reasons in yield, everything rests on a sound estimate of the market rental value of the unit — the rent it could reasonably achieve, vacant and well marketed. It is established from the location, the weighted surface, the condition and the fit-out, then confronted with the rents practised on comparable units in the sector.
For an occupied unit, the gap between this market rent and the rent actually received is the central piece of information: it reveals the untapped potential, or on the contrary an in-place rent already above the market. It is also the stake of commercial lease renewal, the moment when the rental value is renegotiated. We give ranges indicatively depending on the type of location, but the market rent of a specific unit is priced case by case — the online estimator gives a first marker, the appraisal a defensible value.
7. The appraisal approach, in practice in Casablanca
- Scoping: object of the assignment (walls not business), basis of value, purpose of the report (purchase, sale, lease, negotiation).
- Visit and survey: surfaces, configuration, frontage length, height, condition, mezzanine and reserves.
- Location analysis: classification of the axis (no. 1 / 1bis / 2), footfall, commercial neighbourhood of the district.
- Weighted surface: assignment of coefficients by zone, justified in the report.
- Legal and tenancy situation: ongoing lease and 49-16 status, in-place rent vs market, use authorised by the condominium and planning.
- Dual approach: direct comparison (adjusted transactions) and capitalisation of the rental value, then reconciliation of the results.
- RICS-compliant report: basis of value, assumptions, methodology and reasoned conclusion — delivered in 5 to 8 days (48-72 h express), from 3,500 MAD excl. tax.
Such an appraisal informs a decision to buy, sell or let and constitutes a solid basis for an amicable negotiation, supporting your position with third parties. To note: a private appraisal serves to decide and negotiate; in litigation, it is the judge who appoints the judicial expert.
8. FAQ
What is the difference between the value of the walls and that of the business?
The walls are the property: walls, surface, physical location. The business is the trader's asset: clientele, sign, leasehold right, equipment. A property appraisal covers the walls — the market value of the built unit. The business falls under a separate commercial valuation. Buying the walls of an occupied unit does not give the business, and vice versa: you must know precisely what is being valued.
Why does location matter so much in Casablanca?
A commercial premises is worth first through its ability to capture footfall and generate turnover. On the same artery, a no. 1 location (maximum pedestrian flow, visibility, good brand neighbourhood) is worth markedly more than a 1bis or a no. 2 set back. At equal surface, the frontage length, corner position and exposure on the busy axis weigh more than the sqm in depth.
How does an ongoing 49-16 lease affect the value?
The lease subject to law 49-16 of 18 August 2016 confers on the trader a protective status (renewal, eviction indemnity). The buyer of the walls does not freely recover the unit: value depends on the in-place rent, its gap to the market and the latent cost of recovery. A rent far below the market creates a leasehold right in the tenant's favour, which weighs on the value for the landlord.
Which method to value a commercial premises in Casablanca?
Two complementary approaches cross-checked in RICS. Direct comparison adjusts transactions of similar units and suits a vacant unit. Capitalisation of the rental value starts from the net market rent and applies a capitalisation rate: it is required for an occupied or income unit. The surface is weighted beforehand, because the shopfront is not worth the depth.
How much does the appraisal cost and how long does it take?
From 3,500 MAD excl. tax, by RICS-certified experts, with a report in 5 to 8 days (48 to 72 h express) and a quote confirmed within 24 h. For a first indicative marker before the appraisal, the online estimator gives a range, but only the on-site appraisal establishes a defensible value.
Buying, selling or letting a commercial premises in Casablanca?
RICS-certified experts — walls / business distinction, location classification, weighted surface, dual approach and analysis of the ongoing 49-16 lease. Reports compliant with RICS standards, from 3,500 MAD excl. tax, in 5 to 8 days (48-72 h express).
Note: This article presents a valuation methodology for information; it does not substitute for an appraisal of the property. The weighting coefficients, capitalisation rates and adjustments depend on each unit and fall under the expert's professional judgement. The price or rent ranges mentioned are indicative: for an exact value, use the appraisal. The commercial lease framework falls under law 49-16: confirm your situation with your notary or adviser. To have your unit valued, see our real estate appraisal service or the blog.