It takes a lot to run a business, and owners will need to stay constantly on top of everything to keep the organisation functioning properly.
A key part of this is knowing how much your organisation is worth. A commercial property valuation can be of great assistance in this regard.
These valuations are performed by experts who are trained in assessing the value of all kinds of businesses. As professionals who are registered with the Australian Property Institute (API), valuers know exactly how to prepare accurate and reliable valuation reports.
The Benefits of Independent Commercial Property Valuations
By considering every relevant factor, and using various valuation techniques, valuers can prepare meticulously detailed documents in line with every regulatory and legal requirement. For the most part, valuers have vast amounts of experience and are guided by industry benchmarks to keep a consistent standard of quality across every report.
There are many reputable firms and a wide variety of available commercial property valuations in Adelaide.
What valuation approach is used for commercial real estate?
Like with most valuations, the process will start with an inspection of the building and area. The valuer will consider a few different things such as the size, the available space, the location, the condition, and the features. Additional elements such as parking availability, zoning laws, and environmental factors have an impact on the final assessment.
Valuers also consider economic factors and market trends that may impact the the final assigned worth. As industry experts, they are constantly aware of the existing market conditions. Aspects of the direct comparison method are also used, as valuers will assess the sale or rental of similar commercial properties in the area.
The type of commercial property being assessed is also a key factor, as it will impact how the valuer approaches their assessment. One intended for retail purposes will be valued differently than an industrial one.
Expert valuers include every relevant detail that makes up the property’s value in their reports, as well as any additional information such as non-compliance or legal issues. By purchasing a commercial property valuation, there is no longer a need for debate regarding the worth.
Why get a commercial property valuation?
The benefits of commercial property valuations are wide-ranging, and the independent reports are useful in a wide variety of circumstances. Each report is custom-made to clients’ needs, and valuers make sure they adhere to every legislative and regulatory standard.
A few of the commonly requested types of commercial property valuations are:
Pre-purchase/Pre-sale advice
One of the most common reasons people and organisations request commercial property valuations is for guidance prior to a potential sale or purchase. An independent valuation benefits every party as it offers a clear outline of how much the property is worth in the existing market.
Settlement Negotiations
In any negotiation surrounding commercial property, parties can often come to disagreements over its current value. An independent valuation can ensure that an accurate monetary worth is assigned to the property in question, and settlement negotiations can move at a swifter pace.
Deceased Estates
Dealing with a deceased estate often requires a fair division of property among the various beneficiaries. As this process is tough on many, a valuation report can help ensure there are no hiccups down the line.
Asset Valuation
Keeping track of your assets is a crucial aspect of running a company. Valuations can help properly plan for the sale and purchase of assets, giving you clear ideas of remaining useful life and other important factors.
Compulsory Acquisition
In the context of compulsory acquisitions, valuations are needed to determine the ‘market value’ of the interest and ensure that property owners are fairly compensated when the land is dispossessed. Independent valuations can thus ensure that your rights are protected.
Litigation Proceedings
There may be times when your commercial property is an element or the subject of a legal dispute. Cases like these require a clear and definitive assessment of the property to assign an accurate monetary worth to the property.
Summary
A commercial property valuation is an independent assessment of an income-producing property to determine its value in the existing market conditions. The benefits of commercial property valuations are wide-ranging and ultimately an important part of running a functional business.
Valuers primarily apply the income capitalisation technique to assess commercial properties but may apply several aspects from different methods to reach an accurate amount. By carefully considering each contributing factor, such as size, location, and market conditions, valuers can prepare detailed and relevant reports.
There are several situations where commercial real estate valuations can be beneficial. The certified reports can be useful as pre-purchase or pre-sale advice, as well as help organisations in legal disputes or in need of settlement. Valuations can also help you better manage assets, make well-informed financial decisions, and carefully plan for the future.
For more information on how commercial property valuations work, or how they may benefit your organisation, feel free to speak to one of our highly qualified experts today. We are more than happy to answer any and all of your queries.