Canterbury & Kent

Commercial Valuation

RICS commercial valuations, building surveys, dilapidations and rent reviews for offices, retail and industrial property in Canterbury, Kent and London.

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Canterbury, London, Bristol, Birmingham, Manchester & Cardiff Commercial Valuation

Valuing a commercial property in Canterbury takes careful thought. A property's value rests on its location, its condition and the current state of the market.

People seek this service for several reasons. Common ones are investing, buying or selling, and securing loans against the property.

Companies, banks and private lenders all need an accurate picture of a property's value before they make financial decisions on it.

A commercial valuation involves a full inspection of the property, a review of any leases and tenancy agreements, and an assessment of its condition.

The valuer then studies the current market. The valuation reflects the most likely price the property would fetch in a fair, normal sale.

Appraisals of this sort yield the appraised Market Value of the property.

A shop, office or industrial unit is an asset that produces income for its owner. Investors manage these properties for a return, and they accept a range of risks to achieve it.

Commercial property in Canterbury is valued for many reasons. The most common are loan security, sale, development appraisal, taxation and insurance.

Does my Commercial Property need a Valuation?

There are several key reasons necessitating the need for commercial property appraisals in Canterbury:

The Market Value: first is the basic need to know the property's market value. If you plan to buy a commercial property, you need to know what it is worth today.

Loan Security: market value matters even more when the property will secure a loan. A business seeking bank funding will usually need a valuation to prove its property is worth enough to act as collateral.

Appraisals: valuations are also needed for dilapidations. These are the repairs a landlord may ask a tenant to pay for when the tenant moves out.

Types of Commercial Valuation Canterbury

Chartered Surveyors value commercial property to the global standards set by RICS Valuation. They mainly use three techniques: the cost approach, the income approach and the sales comparison approach.

Estate agents use similar methods for homes. These techniques, though, give a far more detailed analysis of a commercial property's value.

Sales Comparison

This technique uses recent sales of similar properties to estimate value. The valuer looks closely at the age, location and condition of each property.

They also weigh how long ago each sale took place and how the market has moved since. Finally, they consider size and how close the property is to public and private services.

Income Approaches

There are three distinct sub-methods:

The Gross Rent Multiplier: this compares similar properties and works out their ratio of sale price to gross rent. The result is a multiplier. Applied to the subject property's gross rent, it gives an estimate of value.

Direct Capitalisation: this uses the property's net operating income and a capitalisation rate suited to the local market. The rate comes from sales of comparable properties, adjusted for location, condition and other factors.

Discounted Cash Flow: this method forecasts net cash flow over time, usually 10 years, and estimates the value at the end of the period. It uses the present value of the cash flows to come up with a value.

Cost Approach

This approach bases the valuation on the cost of construction rather than on condition, location or rental income. It suits older buildings, where wear and obsolescence affect the figure. It also takes the building's economic lifespan into account.

RICS Commercial Valuation Service Advantages

1. Dependable: RICS valuers are trained to give reliable valuations. They balance current market conditions against demand, so the figures stay as close as possible to forecast values.

2. Professional: RICS valuers must comply with the globally accepted standards of the RICS Red Book. That guarantees a high degree of professionalism and ethics.

3. Market insight: RICS valuers know the commercial property market in depth. Their insight goes well beyond the physical features and location of the property.

4. Risk identification: Canterbury surveyors can spot and weigh potential risks. Their figures tend to be conservative because they factor in possible pitfalls.

5. Impartiality: registered valuers provide an unbiased assessment of a property’s value. That impartiality builds trust between buyers and sellers.

6. Finance: lenders often insist on an RICS valuation before they will offer commercial property finance or refinancing.

7. Negotiation: the property valuation becomes a powerful asset for either party and a great aid to the negotiations whether one buys, sells or rents.

8. Credibility: RICS is a respected and credible international institution; therefore, using its property valuation service carries a high degree of credibility.

9. Strategic advantages: key property decisions like acquisitions, portfolio management, and property disposals require a solid basis for the underpinning value of the property in question. The RICS Valuation Service can provide that.

10. Understanding: a valuation report can serve not just as a valuation but a doorway into understanding the property market better.