Commercial Property Valuations
For owners and investors of commercial property, valuations are a key service. A commercial property valuation is a tried and tested method of finding the market value of a subject commercial property.
The valuation comes in the form of a comprehensive report outlining every relevant detail related to the existing market value. Everyone with a stake in commercial real estate can benefit from having a clear idea of their property’s worth.
What is a commercial property?
In simple terms, a commercial property is a building or piece of land where a business operates from. The purpose of commercial real estate is to generate income and build profits.
A few examples of commercial property types include:
- Office rental spaces
- Shopping centres
- Supermarkets
- Distribution warehouses
- Logistics centres
- Car washes
- Hospitals
- Restaurants
Any property used primarily for any form of business activity is a commercial property.
Who prepares commercial property valuations?
Only highly qualified property specialists can deliver commercial property valuations, and these professionals are known as Certified Practising Valuers (CPVs). Registered with the Australian Property Institute (API)—the governing body that sets stringent quality standards for thousands of property experts across the nation. Our CPVs also often hold AVI or RICS qualifications. This robust combination of accreditation and expertise ensures every commercial property valuation meets the highest professional benchmarks.
CPVs are well-versed in reviewing a range of different commercial property types. A valuation report from a registered CPV is accepted as official proof of market value. From office valuations to retail store valuations; CPVs have the tools and skills to assist.
How is commercial property valued?
Valuers begin the process by performing a full physical inspection of the property. They also review relevant information from market and property databases to help determine the state of the market.
CPVs use a combination of reliable valuation methods to find market value. For commercial real estate, the most commonly applied method is known as the income capitalisation approach.
The income capitalisation approach is focused on the profits that the property generates. First, valuers determine the net operating income (gross effective income minus operational expenses). This amount is then divided by a capitalisation rate to find the market value.
Valuers also consider several additional factors when preparing reports such as:
- The size and space
- The location
- The parking availability
- The surrounding infrastructure
- The zoning laws
- The general safety and security of the area
- The potential environmental risks
By going through every internal and external factor, and carefully applying a combination of trusted methods, valuers can reach precise figures.
Why choose us?
AT NT Valuers, our team members are Certified Practising Valuers (CPV) with decades of experience reviewing commercial properties. We pride ourselves on being industry leaders and guarantee to provide reports that are accurate, detailed and relevant.
With our help, you can effectively manage your commercial property investments. If you would like to learn more about our range of commercial valuation services, don’t hesitate to reach out. One of our localised property specialists would be happy to help you out.