Commercial Valuations in Surrey, London and the Home Counties

Our RICS Registered Valuers provide formal Red Book valuations, drawing on our extensive specialist knowledge to deliver valuations for a diverse range of purposes.

Commercial valuations crucial information for owners, investors, lenders and tenants for profitable decision-making. A RICS commercial valuation report helps to assess value and the key factors that influence property values, and they can be created using various methods depending on the type of property.

Whether you are an investor considering a property purchase, an owner interested in refinancing or a tenant negotiating lease terms, our commercial valuation services are available to help you make the right decisions.

With a team of valuation experts, we’re able to provide a comprehensive range of commercial valuation services and market appraisals for our clients. Our skillset spans a host of commercial industries, ensuring we’re able to add real value for our clients.

When are commercial property valuations required?

• If you’re considering a property investment, you need to know the current market value of the property you’re interested in investing in
• If you need to secure funding from a bank, the lenders will require loan security and have evidence that the property is worth enough to cover the outstanding loan
• If your lease has expired and your landlord is making a claim for repairs, a valuation may be required to ensure you don’t pay more than necessary if the property value has decreased
• If you are applying for a mortgage, buying a leasehold property or a share in a commercial property and you’re required to pay Stamp Duty
• If you’re preparing to sell your commercial property, you will require a formal valuation to calculate any Capital Gains Tax due
• If you’re entering into a loan agreement, the lender may want to ensure the loan is secured by checking the property is worth enough to serve as collateral

Different Commercial Property Valuation Methods

There are several main approaches valuers use to determine the market value of commercial properties in the UK:

Cost Approach

The cost approach looks at what it would cost to replace the property with a similar new building. This valuation is based on the current cost of constructing a similar property, minus depreciation and obsolescence. It’s best-suited to newer buildings or properties with specialised uses.

Sales Comparison Approach

This approach analyses recent sales of comparable properties, with adjustments made for differences between the subject property and comparables, such as location, size, age and condition. The more similar the recent sales are to the subject property, the more applicable this valuation method is.

Income Approach

With this method, a property’s value is estimated based on its income-producing potential. The net operating income is divided by a capitalisation rate to arrive at a value. The capitalisation rate is derived from sales of similar UK investment properties. There are also more complex income capitalisation techniques like discounted cash flow analysis. This approach works well for income-generating properties.

Gross Rent Multiplier

A simplified income approach, the gross rent multiplier values a property by multiplying its annual gross rent by a factor based on sales of comparable UK properties. The multiplier is calculated by dividing sale prices by gross annual rents. This method is best for smaller, single-tenanted properties.

Choosing the right methodology or combination of methods depends on the property type, age, location and availability of data. Our valuers will use their expertise to select the most applicable approach to arrive at a well-supported valuation.