Commercial property valuations for investors and developers

Commercial property valuations by our highly experienced and knowledgeable team of RICS Registered Valuers, working within KWB’s multi-disciplinary commercial property practice.

Our valuers draw upon our extensive in-house property intelligence and transaction data to provide informed and well-considered commercial property valuations. Continuous, up-to-date input from our sales and lettings agency, and our rent review and lease renewal services, provide a constant source of market intelligence. This process informs our ability to provide a rounded approach for valuing a wide range of property, from the main commercial sectors of office, industrial and retail property to mixed use schemes, licensed and leisure property, and residential blocks.

KWB focuses its commercial property valuations within Birmingham, Solihull and throughout the West Midlands. Whilst our geographical areas of expertise also extend to Worcestershire, Warwickshire, Staffordshire and Shropshire, we also service the national portfolios of clients by undertaking in-depth research into the local area.

Types of commercial property valuation

We undertake commercial property valuations for a wide range of purposes, including:

• Valuations to support the purchase price of a commercial property and to confirm that it is a suitable investment. These are required by banks, mortgage lenders, funding institutions or the trustees of pension schemes, such as a SIPP (Self-Invested Personal Pension) or SASS (Small Self-Administered Scheme).
• Ongoing SIPP/SASS valuations – undertaken for pension scheme trustees where properties are required to be valued on a regular basis, including the market rent, market value and reinstatement value.
• Valuation of rebuilding costs for insurance purposes – even if your commercial property is not part of your pension, an accurate and regularly updated reinstatement value will ensure that you are neither overpaying on your buildings insurance nor, more importantly, that you are underinsured – as this may result in your insurance company not paying out in full. The reinstatement value is a very different figure from the market value, as it represents the cost of labour and materials to completely rebuild a commercial property if it was destroyed beyond repair. The cost to rebuild a property frequently exceeds its market value, particularly for listed buildings or unusual properties, but also due to costs associated with access and complications arising with neighbouring buildings.
• Balance sheet valuations – accounting procedures and today’s increased financial scrutiny require companies to value their properties on a regular basis in order that the asset value can be relied upon within the company’s published accounts.
• Property valuations for company partnership dissolution or company restructuring due to matrimonial disputes or ‘business divorces’.
• Probate valuations and commercial property valuations for inheritance tax purposes.
• Valuations for taxation purposes and tax planning – in addition to inheritance tax, we also provide valuations for capital gains tax, stamp duty land tax, corporation tax, income tax and retirement options. Such valuations often need to be based on a very specific date, which is quite often historic and therefore requires in-depth knowledge of local market conditions and activity at a particular time.
• Valuations for rent reviews and lease renewals – to provide advice on what level of rent a tenant should be paying or a landlord should be charging.

Fully regulated

A commercial property valuation is not just about a value – it’s about the thought process and all the elements that are taken into account in arriving at the valuation. This includes the type of property and a range of factors that the valuer regards as important, such as the location, the local market conditions or even the political environment. A reinstatement value for insurance purposes is one figure – valuing what the building is actually worth is something else. A commercial property valuation is one that those making financial decisions need to ultimately place their reliance upon.

At KWB, we provide valuations that are well researched and thoroughly considered assessments of the factors influencing a commercial property’s value, and arrival at that value. Our valuations are prepared in full compliance with the RICS (Royal Institution of Chartered Surveyors) Valuation – Global Standards (current edition), more commonly known as ‘The Red Book’. This contains mandatory rules, best practice guidance and related commentary for all members undertaking asset valuations. It promotes and supports high standards and a consistent approach in performing valuations, which are fundamental requirements of large lending institutions.

Building survey report and valuation

When you say ‘value my commercial property’, our building survey report and valuation will typically detail:

• The location and address of the property.
• A description of the property, comprising its approximate date of construction and what materials the building is constructed from, for example brick, steelwork or reinforced concrete, including the presence of any hazardous materials, such as asbestos.
• The EPCs (Energy Performance Certificates) associated with the building and future compliance with new energy legislation.
• The condition of the building and its accommodation, highlighting any potential defects and advising on the requirements for future maintenance.
• Any environmental and contamination issues affecting, or likely to affect, the property or surrounding areas, such as flooding.
• Confirmation of approved planning permission for current and proposed use, if different.
• Market value and reinstatement value of the property, taking into account whether the property is being purchased with vacant possession or with an existing lease in place.
• Market rental value of the property.
• Market rental and reinstatement values before and after development work, if such works are proposed.

KWB Property Management Ltd is an appointed representative of Jobson James Insurance Brokers Ltd, which is approved and regulated by the Financial Conduct Authority (no. 516147).

KWB valuations team

Acting with integrity, independence and objectivity, our team of RICS Registered Valuers have the appropriate skills, qualifications and experience to undertake your instructions. We maintain professional indemnity insurance cover for the purpose of our instructions and the current limit of indemnity per individual claim is £5m.

For more information, or to discuss your particular circumstances, please contact our valuations team: