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?

Here are instances when a commercial property valuation in Manchester might be needed:

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

The sales comparison approach is the most intuitive. It takes the values of recently sold, comparable (or “nearby”) properties and uses them to help determine the value of the subject property. However, as you may have already realized, this technique requires that there be enough sales transaction activity in the subject property’s neighborhood to allow the appraiser to find nearby, recently sold comparables.

Income Approach

 There are three different sub-methods of the income approach:

Cost Strategy

Although the value of a residential property centers largely around its condition location, potential for rental income, floor plan, and amenities the cost approach examines the cost to build. This may be more applicable to older constructions where issues like physical deterioration and obsolescence come into play, but it can also be applied to any building in determining fair market value by considering the building’s economic life.

Benefits of the RICS Commercial Valuation Service

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:

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.

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