For commercia real estate, market price is set by cap rate, which is really the percent return you can get for a given market based on the rents you are receiving. It usually ranges from 4-10 percent per year return, assuming you have no mortgage. Replacement cost, obviously, is the construction cost to build the building as it stands today. So, it varies depending on the market. 

Is market price usually lower than replacement cost?

I guess it depends on the market 

Your tone suggests yes 


Bell_curve

Yes, because they are doing a replacement cost valuation. Market value is a whole different animal-the price a real live buyer will take it off your hands for. 

siggy47

econ

When Money Dies In The 21st Century

I remembered a funny story from last year. 

The new insurance company appraised the property. Their appraisal was *higher* than the estimate my mom gave.   
