
Valuation of Commercial Property
Appraising commercial buildings in Manchester, London, Bristol, Birmingham, Kingston, and Cardiff
Meticulous attention needs to be paid to several factors when a commercial property market valuation is undertaken in Manchester. These are the property’s location, condition, and the current market trend. Such valuations may be required for a number of reasons—for example, to help secure a loan for a property, to enable a detailed investment appraisal, or to assist in the acquisition or disposal of a property. Each valuation is undertaken by an RICS-regulated Chartered Surveyor.
When determining the value of a piece of commercial real estate, the steps taken are similar to those used in appraising a single-family home and the property is inspected inside and out. The property’s leases and tenancy agreements, if any, are understood and considered and the basic condition of the property is contemplated. The analysts undertake a property-by-property analysis of the current market situation.
Commercial real estate asset—such as a shop, office, or industrial unit—typically produces incoming cash flow and is generally held by an investor for the long term. The asset is managed for returns that equate to the investor’s individual appetite for risk—that is, returns in the capital markets. In Manchester, valuations of commercial real estate serve many purposes, including as a basis for loans (notably, underwritten by banks), for selling the property, for appraising it in the context of a development proposal, for use in taxation, for property insurance, and so on.
Is a Commercial Property Valuation Necessary?
- Market: commercial real estate buyers must know the current market value of properties they are considering for purchase.
- Security: if you are borrowing money to finance your business, then the lender is going to want some assurance that the piece of commercial real estate you are using as collateral is worth the amount of the loan.
- Dilapidation Repairs: when your lease expires, your landlord will attempt to make you compensate him for what he perceives to be his losses. If those losses involve repairs that shouldn't have been needed at the end of the lease you must contest the charges and If you are found liable, the charges shouldn't exceed the value decrease of the property.
- Stamp duty: when you take out a mortgage buy a leasehold or purchase a share in a commercial property, you must pay Stamp Duty.
Types of Commercial Valuation Methods
The methods employed by the RICS valuation experts are global best practices for a reason: they give a more refined and clearer assessment of value. To achieve this the RICS employs three main techniques to determine market value.
The first two are the income approach and the sales comparison approach, which are most favored by appraisal experts, including those who value commercial properties. The third method, the cost approach, is used less frequently but it can still deliver reliable estimates of value.
Sale Comparison Estimations
Income Approach
- The Gross Rent Multiplier: take the sales prices of comparable properties and divide them by the annual gross rent - the result is a ratio that can be used as a multiplier.
- Direct Capitalisation: focus on the net operating income of the property, get a cap rate from the sales data of comparable properties, and adjust that rate as you see fit, depending on the property, its location, and its condition.
- Discounted Cash Flow: this is the most complex method - the net income for the property is projected over a 10-year period; then, the income and the projected sale price at the end of that time are discounted to present value.
Cost Strategy
Benefits of the RICS Commercial Valuation Service
- 1. Accuracy: the appraisals provided by RICS Valuers give you a dependable and reliable forecast of the worth of your business property representing it as closely as possible to the current market dynamics.
- 2. Assurance: complying with internationally recognised standards such as the RICS Red Book provides a high level of professionalism and a good set of ethics within which to operate.
- 3. Comprehensiveness: surveyors undertake an extensive analysis of all important factors that can affect your property's worth allowing them to provide a that is not just a reliable estimate but a practically valuable one for you and your stakeholders.
- 4. Possible Perils: identify potential problems arising from the property that could connect to the environment or use.
- 5. Purpose: an unbiased assessment of the property's value is essential for fair and straightforward contracts.
- 6. Funding: lenders ordinarily require an RICS valuation when you as a homeowner seek financing or when refinancing for commercial properties. The valuation undergirds the property's value when you mortgage or lend.
- 7. Negotiation: having RICS valuation to hang on to during negotiations is a potent weapon. Whether you are buying, selling, or renting a property, knowing its true value gives you the upper hand.
- 8. Law: for taxation and legal compliance valuations are essential. They are necessary for instance when calculating capital gains tax, achieving sensible divorce settlements, and resolving disputes.
- 9. Strategy: properties are sometimes acquired, disposed of or held as part of a strategic vision for a real estate investment portfolio.
- 10. Credibility: when a property is put on the market, the price being asked must have some basis in reality. A valuation provides that basis.
Surveys of Commercial Property
If you’re thinking of acquiring, leasing, subletting, disposing of, or altering commercial premises in Manchester, you would be well advised to locate a surveyor skilled in the nuances of commercial building surveying – should you spot a defect in a commercial building you can use that information to negotiate an asking price for the property that’s considerably lower than what the seller originally wanted, or you can talk your way out of a bad deal altogether.
Our Manchester-based team of RICS-compliant commercial building surveyors is equipped to handle matters throughout Manchester.

Surveys of Commercial Property
If you’re thinking of acquiring, leasing, subletting, disposing of, or altering commercial premises in Manchester, you would be well advised to locate a surveyor skilled in the nuances of commercial building surveying – should you spot a defect in a commercial building you can use that information to negotiate an asking price for the property that’s considerably lower than what the seller originally wanted, or you can talk your way out of a bad deal altogether.
Our Manchester-based team of RICS-compliant commercial building surveyors is equipped to handle matters throughout Manchester.
Contact
Our team prioritizes client care above all else. We look forward to being in touch with you so you can instruct a surveyor in Manchester, London, Bristol, Birmingham or Cardiff. You can reach out to us easily. Just fill out our form, and we’ll get back to you with a free quote for your survey. All our surveyors are qualified as members of the Royal Institution of Chartered Surveyors (RICS) and we are one of the UK’s leading providers of building survey and valuation services:
- Accredited Professionals: Certified by organizations like RICS, CIOB, and RPSA.
- Customized Survey Reports: inspections to meet your specific requirements.
- Local Expertise: Deep understanding and specialized knowledge.
- Expert Guidance: Professional recommendations and support.
The property survey you commission will be carried out by an accredited professional. Your chartered surveyor will be a member of the Royal Institution of Chartered Surveyors (RICS) or the Chartered Institute of Building (CIOB), or will belong to some other industry-standard professional body. Rest assured; you will receive highest quality of professional service for your survey.