The real estate appraisal might be driven by externalities, such as surrounding, locational, and
natural attributes. In residential property studies, flood influence in housing valuation is a
well-known subject; however, there is a gap in commercial real estate. Thus, this thesis sought
to assess if flood influences commercial property rents in Belém-PA, Northern Brazil, a city
where flood-prone areas concentrate the most significant retail activity. To this, OLS
regression models predicted the impact of flood-prone-zone locations on the marginal rents in
a 586 commercial property database. The results revealed that highly flood-prone zones
reduce commercial rents by 9.78% rather than in no flood-prone ones. It decreased 3.26% in
rent values between each flood-prone zone (low, medium, and high). When moderated by the
property frontage, the impact of flood-prone zone diminished because more prominent
facades induced more consumer attraction, thus demand. The sensitive analysis revealed an
accuracy in predicting commercial rents ranging from 13 to 36 reais per square meter. The
scientific-added value concerns the novelty approach in evaluating flood influence in
commercial property rents in emerging country scenarios. Besides, it assists investors by
using the econometric model as a decision-maker support tool to acquire commercial real
estate
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