Unlike residential property, which is more valuable with vacant possession, commercial property is often more valuable if it is tenanted. This is reflected by using the Investment Method of Valuation, where we assess the rental value and apply an investment yield to the income (rent).
We will need to analyze the terms of the existing lease, assess the impact of any unusual or onerous covenants, and assess the covenant strength of the tenant to allow us to determine the appropriate yield to use. Sometimes property can be under rented, in which case we will reflect the likely increase in income at the next rent review.
On other occasions the property might be over rented in which case we would value the “hardcore” and “top slice” of income separately.
A comprehensive understanding of the relevant property sector is also a requirement. For instance, the RICS issued a Valuation Notification to its VRS registered valuers in December 2018 expressing concern about the structural change occurring in the UK retail property market.
The team at CSD provide an independent and balanced assessment of the historic, current and future trading performance of a business, taking into account of relevant legislation and reflecting changing market conditions.
If you require one of our Investment Property Appraisals for any of the reasons detailed, please contact us by telephone on 0808 169 8881 or via email using firstname.lastname@example.org
On the other hand, if you would like to learn more about our wide range of services, simply visit the links below:
- Reinstatements Costs
- Schedule of Conditions
- Commercial Valuations (Probate, Charities Act, SIPPS/SASS, etc)
Regardless of the service you require, our team would be more than happy to discuss your individual circumstances and provide our expert and impartial advice.
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