How to value a commercial property

Knowing the current value of your assets is crucial for a range of business scenarios and to help you make informed decisions on your commercial properties.

Valuing a commercial building or property usually involves more factors than when valuing a house or flat. Because of this, it’s especially useful to understand the basics of how this is done and the importance of getting a commercial property valuation report from an independent professional.

How is commercial property valued?

For a commercial property valuation, a surveyor will look at a range of different factors, including all areas of the building like plumbing, heating, roofing and other important features. 

A surveyor will thoroughly inspect these areas and analyse current market data. Location will also be carefully considered with the building’s potential income being determined depending on this and how many tenants and employees it can accommodate. 

If you own or are looking to buy retail space, an office building, industrial site or another type of commercial property, it’s key to know how much it’s worth whether you’re looking to buy, sell, let, mortgage or develop it.

What is a commercial property valuation report?

A commercial property valuation report is a comprehensive document that should accurately reflect the property’s current market value and explain the relevant information impacting its value. Any relevant planning permissions and environmental considerations should also be discussed within it.

A valuation report can provide businesses, investors and lenders with a market valuation as part of pre-sale advice. An official commercial property valuation report can also be used for financial reporting, insurance, corporate transactions and probate.

Whatever situation you need a commercial property valuation report for, this will help you understand the value of your investment. A surveyor should also be able to provide advice tailored to your needs with commentary on market conditions and other factors that can influence the property’s value.

Benefits of getting a commercial property valuation

There are a number of benefits that come with getting a commercial property valuation for your investment from an independent, experienced surveyor who follows the latest RICS standards and relevant legislation.

1. Saves time and resources.

First and foremost, paying for a commercial property value now can help you save time and resources over the long term. Getting this done proactively will allow you to have information on your property that can prove to be beneficial to have on hand.

2. Allows you to understand the market value.

A professional property valuation can provide a clear picture of the current market and potential future value depending on certain circumstances. The report can also highlight any strengths or issues with the property, helping you avoid any frustrating or expensive surprises.

3. Keeps your financial accounts up to date.

It’s good business practice to have up-to-date accounts and an accurate record of your assets. Periodically getting valuations can be extremely useful for your business, allowing you to be aware of any changes to the value and helping you get the most out of your investment.

4. Provides independent insight.

As the property market is constantly changing, it can be useful to have independent insight through a commercial property valuation report. Whether you’re buying, leasing or selling the property, it can allow you to be aware of its condition, the local market and what will likely impact its value in the future.

5. Helps you make informed business decisions.

Above all, having comprehensive insights from an expert provides a good foundation to make well-informed decisions on your commercial property investment. This can also allow you to make decisions with more confidence and even be more profitable.

Commercial valuation near me

Eddisons is a RICS regulated firm and can provide red book commercial valuations of assets and businesses across all sectors and specialism.

Whether the valuation is for a secured lending decision, corporate reporting or a commercial transaction, we provide tailored and credible valuations backed by our in-depth knowledge that can enhance your decision making.

With more than 30 offices across the UK, we can help you find the right professional to undertake a commercial valuation near you. For more information about our commercial property valuations, get in touch with our valuations team.