What is a commercial property valuation?
A commercial property valuation assesses a commercial asset’s value at a nominated date. For income-producing property, the valuer considers lease income, outgoings, vacancy and market evidence alongside the land and buildings.
Propti coordinates commercial and retail property valuations for acquisitions, disposals, ownership changes, financial reporting and other instructed purposes. The property type, interest being valued and intended report users are confirmed at the outset.
Retail, office and mixed-use property
Retail property can include street-front shops, showrooms and shopping centres. Relevant information may include tenant mix, foot traffic, turnover rent provisions, lease expiries and incentives. An occupied shop and a vacant shop can require different assumptions.
For offices, accommodation quality, location, parking, fit-out, lease incentives and competing space help explain market positioning. Mixed-use buildings may need separate analysis of their residential and commercial components. Warehouses and manufacturing premises have additional considerations covered under industrial property valuations.
Evidence used in a commercial valuation
- Current leases, lease variations, rent reviews and options.
- Rent schedules, incentives, arrears and recoverable outgoings.
- Floor areas, plans, title information and occupancy details.
- Comparable property sales, rental evidence and relevant market yields.
- Known capital expenditure, vacant areas and property-specific constraints.
The valuer selects and explains suitable methods, which may include direct comparison, income capitalisation or cash-flow analysis. The method follows the asset and available evidence.
Prepare your instructions
Send the property address, tenancy schedule, report purpose, valuation date and recipient requirements. Identify whether you need the landlord’s property interest valued or another interest. A business, tenant fit-out or movable equipment should not be assumed to be included.
For tax reporting, see CGT valuations and SMSF property valuations. A depreciation report serves a different purpose from a market valuation.
Frequently asked questions
Can a vacant commercial property be valued?
Yes. Tell us about the vacancy and previous use. Market rent, leasing prospects and the property’s physical attributes may be relevant to the assessment.
Will the report be accepted by my lender?
Acceptance depends on the lender’s instructions, approved valuer panel and reliance requirements. Confirm these before commissioning a report.
How is the valuation fee determined?
Complexity, tenancy numbers, location and the reporting scope affect the fee. Request a commercial valuation quote with the available property and lease information.