Commercial Property Valuation

How much is my property worth?

Commercial property valuations are required for a range of different purposes and can give rise to different approaches as well as values. Properly identifying the how much your property is worth is an essential part of the sales process.

We have broad experience in undertaking commercial property valuations for Bank lending, pension funds, company accounts, capital gains tax, probate, acquisition, disposal, and insurance. In depth knowledge of the area, the local market and property trends is essential to providing the client with reliable advice and values.

Commercial property valuations are undertaken by experienced surveyors and in compliance with the RICS Valuation – Professional Standards (2014).

  • Range of commercial property valuation services offered
  • Valuers experienced in the market and type of property concerned
  • Compliance with the RICS Valuation – Professional Standards (2014)
  • 2 RICS Registered Valuers

Andrew Buckman and Graham Jones are our two directors who specialise in commercial property valuations who each have a wealth of experience under their belts. If you have any questions about our commercial property valuation services, please feel free to get in touch.

Q&A – Commercial Property Valuations:

  • How can the same commercial property have a number of different values?

    • Valuation of commercial property is an art not a science! Detailed knowledge of the market is required, backed up with a database of similar transactions in the area, adjusted to take account of the specific features of the property and an understanding of its legal status (whether leasehold or freehold and whether it is subject to an occupational lease or licence).For example a property which is let on a long lease may well have an investment value appreciably higher to an identical property which is occupied on a short lease. The same property available with vacant possession may have a different value again.Formal (or Red Book valuations – see below) usually require an opinion of “market value”, but if the valuation is required for financial statements then “existing use value” is required, and this can in some circumstances differ from market value.Lastly there are “replacement cost” or “building insurance” valuations: these have no relevance to the “market value” of the property ie. the figure at which it can be sold in the open market. These valuations are based on the cost of replacing the existing building with a modern equivalent if the property were to be severely damaged or demolished. As such they are calculated on current costs of construction.
  • Can any surveyor be used to provide a property valuation?

    • For the purposes of assessing the value of the property if you are looking to sell (or to buy) the answer is “yes”. However if a valuation is to be relied upon by other parties then there is a set of procedures set down by the RICS – currently the RICS Valuation: Professional Standards 2014 – with which compliance is obligatory. This Standard is sometimes referred to as “The Red Book”, and sets down at some length and in detail the requirements of a valuation which is to be relied upon by third parties as opposed to just “marketing advice” as above. Typical examples of when a Red Book valuation report is required are:
      • For company accounts or inter-company transactions.
      • For inheritance tax (sometimes referred to as probate).
      • For Bank or third party secured lending.
      • For pension fund purposes, regular re-valuation or on draw-down.
      • For use in Court eg. matrimonial cases
  • Can Red Book valuations be undertaken by any Chartered Surveyor?

    • Any Red Book valuation must be undertaken by an RICS approved Registered Valuer. Kingston CPC Ltd has two such valuers – Andrew Buckman and Graham Jones. Before commissioning a Red Book valuation you should check to see that the valuer has the appropriate qualifications.