Are you looking to purchase or sell a shop or office? But how do you ascertain how much the property is worth? At Kirkby Diamond, our team carries out RICS valuations near you on a range of commercial properties, like offices, warehouses, and shops, every day – we’re connoisseurs when it comes to determining a fair value.
Unlike residential property valuations, typically created on an owner-occupier basis and a direct comparable sales approach, commercial valuation reports are formed using various techniques subject to the property type. Usually, this is known as the investment method.
What’s the Investment Method for a Commercial RICS Valuation Near Me?
This method is normally used for a building that already houses a tenant that's being surveyed and has the advantage of rental income. Firstly, one of our expert commercial valuation specialists contemplates how much rent is being paid, the length of the lease, and the forecasts for rental development.
Your surveyor then uses comparable market info, concentrating on cases where similar adjacent properties have been leased, which then allows them to provide an estimated market rent. This is then likened to the passing rental while making suitable assumptions associated with upcoming rental influxes and possible gaps.
Next, one of our professionals gauges how secure a landlord’s revenue is, as investing in a property isn’t dissimilar to any other investment. Investors should always seek a return on the capital they put in, and by having a property RICS valuation near you carried out by one of our surveyors, they'll establish whether the commercial investment is sensible or not.
For instance, investing in a large retail chain would be a much better risk than a sole trader who’s less established. Thus, a property investor would probably have to fork out significantly more on an income from a retail chain.
How Kirkby Diamond Can Assist
With many years of experience in the commercial property market in Herts, Beds, and Bucks, our commercial property consultants can cover warehouses, shops, offices, restaurants, pubs, nursing homes and more. If you need a RICS valuation near you, look no further than Kirkby Diamond. Drop us an email at info@kirkbydiamond.co.uk.