Commercial Property Valuations

Commercial Property Valuations

A systematic and measured approach is always required for an accurate commercial property valuation. The gathered market information is key to an accurate valuation and we pride ourselves on undertaking full market research with all valuations which is detailed in our valuation report.

While commercial valuations differ from residential valuations and generally lack the emotional element, there are still many factors to consider.

A commercial valuation would include income generating properties such as office blocks, retail properties, apartment blocks, petrol filling stations and the like.

When valuing these types of assets, the income capitalisation method of valuation is generally the adopted approach, but the value influencing variables need to be thoroughly checked, and this includes leases, rentals, property expenses, capitalisation rate and the analysis of recent sales.

What Factors Influence Commercial Property Values?

One of the key factors influencing commercial property values is comparable sales and rentals. These are fully researched in terms of the achievable rental for the grade of offices/ retail and for filling stations, the litres pumped by the forecourt area. Sales are also vitally important to check that the final capital value arrived at for the value of the property is in line with market.

In addition, we would consider influencing variables such as the following:

  • The location of the property
  • The building size and quality.
  • Site Area
  • Market and lease rental
  • Property expenses
  • Market yields

The market value of the property, together with other property information such as the municipal valuation, zoning and a full motivation is all set out in our motivated valuation report.

When Would I Need A Commercial Property Valuation?

Considering that commercial properties offer a high investment value, the most common reasons for a valuation is for the purpose of purchase or sale, balance sheet purposes and insurance reviews.

As a business, there are a number of reasons to employ the services of a property valuation professional:

  • Purchase and Sale Valuations
  • Balance Sheet Valuations
  • Fair and Residual Valuations
  • Insurance Reviews
  • Security/ Bond Valuations
  • Expropriation Valuations
  • Forensic Investigations
  • Due Diligence
  • Arbitration
  • Rental Determinations
  • Municipal Valuation Objections

Our team of professional valuers cover the following assets, inter alia:

  • Office Property
  • Retail Property
  • Industrial Property
  • Vacant & Development Land
  • Petrol Filling Stations
  • Motor Showrooms
  • Cold Storage Facilities
  • Apartment Blocks
  • Other Specialised Properties

The Valuation Process

When purchasing a commercial property, one is essentially buying the income that the property could generate. Therefore, when conducting a commercial property valuation, we review leases, property expenses and other value influencing variables for the property, and this is then checked against market information; including recent sales transactions.

If a precise, detailed/ motivated and qualified valuation of your commercial property is what is required, then we are ready to assist. Our experienced team of valuers adhere to the highest ethical standards and closely obey the principled obligations expected from a professional person.

For a free no obligation quotation Contact us today.