Commercial property

We offer valuation of commercial properties. We make a market adjustment of the rent based on the cash flows that can be expected for the property. We look at the interest rate risk, the property's risk, market risk and merchantability. In addition to making financial calculations, we look at the technical condition of the property. Cash flow statements do not include technical aspects of the property in their analyses. For example, if the elevator system or ventilation system is in poor condition and requires replacement in the nearest future, such conditions could significantly affect the value of the property. By conducting technical due diligence in addition to financial calculations, we discover that technical conditions of the property affect the property's valuation.

 

We undertake valuation of all types of small and large commercial properties for private, professional and public property owners. Our interdisciplinary financial and technical expertise enables us to look at the full potential of the property, which provides greater security for you as client. There are major expenses related to MOM (Management, Operation and Maintenance) and a defective description of the property's technical condition will have major consequences for the price and further utilization potential of the property. This is avoided by using professional property experts such as through the services we offer.

 

Market prices are generally easier to determine than the return one can expect through acquisition of contracts and regarding further rental. We find expected yield on the investment and what is a reasonable risk-adjusted return given the property's valuation. Look at it as a bond - the safer it is, the lower the yield is to be expected. The same is true of property. A more centrally located property will have a higher pricing and lower yield but will compensate for it because the property investment has a lower risk.