Drummondville commercial values

Drummondville carries a population of 79,258 and an estimated 2,100 commercial buildings, which works out to 26.5 commercial buildings for every thousand residents. Valulor classifies it as a tier 3 market, meaning it behaves as a tertiary market priced by local owner-operators rather than by fund mandates. That classification is not cosmetic: it decides which asset classes get a published Drummondville page at all, how wide the cap-rate band around a Drummondville valuation should be, and how much weight a single Drummondville transaction is allowed to carry when the band is next revised.

The practical consequence for anyone valuing a Drummondville asset is that the Quebec provincial average is the wrong anchor. Average transaction size here is $1,700,000, and a market that trades at that size supports a different buyer pool than one trading at half of it. Valulor prices Drummondville against its own 2 published bands, then sanity-checks the result against Quebec peers rather than against a national headline yield.

A Drummondville valuation on Valulor always resolves to a range, never to a single number. With 2 bands live for this market, the tool applies the band that matches your asset class, then reports the low, mid and high value that your net operating income supports in Drummondville. Every point of cap rate is worth roughly $2,560 of value on a $1,700,000 Drummondville deal, which is the single best argument for arguing the band rather than accepting the midpoint.

Across the 2 asset classes Valulor publishes for Drummondville, multi-residential prices tightest at a mid of 6.33% inside a 5.63% to 7.17% band, and industrial prices widest at a mid of 6.95% inside 6.25% to 7.79%. The distance between those two midpoints is 62 basis points, and that number is the most useful single description of the Drummondville risk curve.

Read the 62 basis point gap as a liquidity charge. In Drummondville, industrial needs to clear at a mid of 6.95% precisely because the buyer pool for it is thinner than the pool bidding multi-residential at 6.33%, and a thinner pool shows up as a wider band before it ever shows up as a lower price.

Every Drummondville band carries its own provenance flag. A band marked modelled is a baseline derived from the Drummondville cap-rate seed and tier and is clearly labelled as such; it is not a claim about a transaction that happened. When a real Drummondville comparable is verified and promoted, it overwrites the modelled baseline for that asset class and the band is re-cut with the observation count attached. Valulor will not print a Drummondville yield without saying where it came from.

Cap rates value income; price per square foot values the building. In Drummondville, the published range runs from $163 per square foot for industrial to $217 per square foot for multi-residential. Anyone underwriting a Drummondville asset should test both views: a price that looks fair on yield and unfair on a per-square-foot basis usually means the rent roll is carrying risk the cap rate has not priced.

Marketing time is the second half of that picture. Industrial takes the longest to clear in Drummondville at 128 days on market, which is the practical reason a Drummondville seller who needs certainty of close accepts a number below the band mid.

Because Drummondville holds roughly 2,100 commercial buildings, the per-square-foot series moves slowly: any single quarter's trades are a small fraction of the stock, and Valulor treats large quarter-over-quarter moves in Drummondville as data quality questions before treating them as market signals.

Valulor tracks 7 lenders active against Drummondville's 2,100 commercial buildings, producing a Lender Density Score of 33. Expressed differently, there is roughly one tracked Drummondville lender for every 300 commercial buildings in the market. Density is a valuation input, not a footnote: markets where the score is low price wider because a single lender withdrawing changes the clearing price.

With 7 tracked lenders and a density score of 33, Drummondville sits in the part of the curve where relationship lending still decides outcomes. Underwrite the Drummondville deal on the assumption that debt terms are negotiated, not posted.

The financing side also explains why Drummondville bands widen at the bottom of the market rather than at the top. When credit tightens, the Drummondville buyer who needed 65 percent leverage disappears before the buyer who needed 50 percent does, and the marginal bid that used to set the Drummondville price is the one that goes missing. That is why Valulor publishes a low, mid and high for every Drummondville asset class instead of a point estimate.

Valulor publishes 24 Quebec markets, and Drummondville should be read against them rather than in isolation. The nearest comparison set includes Montreal (tier 1), Quebec City (tier 1), Laval (tier 2), Gatineau (tier 2). Montreal is the largest Quebec market on the roster at 1,762,949 residents, and the yield distance between it and Drummondville is the clearest measure of what tier really costs a seller here.

The reason Valulor scopes every slug to its province — drummondville-qc rather than a bare city name — is that Quebec pricing is provincial before it is national. Statute, land transfer cost and lender appetite all change at the provincial line, and the Drummondville band is cut inside those boundaries.

Tier discipline runs through this comparison. Tier 3 Quebec markets carry anchor asset classes only, because Valulor will not publish an office or hospitality page for a market that cannot support a defensible band. Drummondville is one of those markets: it publishes anchor classes and nothing more.

Start with net operating income, not with the asking price. Enter the Drummondville asset's stabilised NOI into the valuator, select the asset class, and read the three values the Drummondville band produces. The mid is the number to negotiate from; the low and high are the numbers to justify. On an average Drummondville deal of $1,700,000, the difference between the low and high value is the entire negotiation.

Then attack the inputs. Most disputed Drummondville valuations turn on management fee, structural reserve and vacancy allowance rather than on the cap rate itself, and a hundred basis points of argued vacancy in Drummondville moves value further than ten basis points of argued yield.

Finally, carry the result forward. The valuation you build for a Drummondville asset travels with you across the network as a shared deal object, so the value, NOI, gross floor area, asset class and the drummondville-qc market tag are already filled in on the next tool you open. Nothing is stored and no account is created — the Drummondville deal lives in the link.

Not advice — Valulor is a data publisher. Every figure here is an indicated value produced by published capitalisation math from inputs you supply — not an AACI, MAI or otherwise accredited opinion of value, not an appraisal, and not advice. Lenders, courts and tax authorities require an appraisal from a licensed appraiser; confirm any number here before you rely on it. About Valulor