Commercial Valuations

Commercial property valuations by RICS Registered Valuers

Our panel of RICS Registered Valuers provides Red Book commercial property valuations across the UK — offices, retail, industrial, mixed-use and commercial land — with reports that lenders, HMRC and courts rely on.

When you need a commercial valuation

1. Investment decisions — establishing Market Value before acquisition or disposal.
2. Bank lending — loan security valuations lenders can rely on.
3. Lease events — renewals, rent reviews and repair disputes.
4. Tax — SDLT calculations, capital gains tax and company accounts (FRS 102).
5. Disputes — independent evidence where a transaction or claim is contested.

What your commercial valuation report includes

Inspection, market commentary, comparable evidence and the valuation on the appropriate basis (Market Value, Market Rent or Existing Use), signed by an RICS Registered Valuer carrying professional liability for the figure. Buying the building as well as valuing it? Pair the valuation with a commercial building survey so the price you pay reflects the repairs you're inheriting.

How are commercial buildings valued?

A commercial building valuation uses the method the asset demands, and a competent report explains which and why:

• Comparable method — direct sales and lettings evidence, where an active market exists for similar units.
• Investment method — for tenanted property, capitalising the rental income at a yield reflecting the covenant, lease terms and market; the mainstay for offices, retail and industrial investments.
• Profits method — for trade-related property such as hotels, pubs and care homes, where value follows the sustainable trading potential of the business in the building.
• Residual method — for development sites, working back from the completed scheme's value less build costs and developer's return.

The valuer also reports the assumptions that drive the figure — tenancies and unexpired terms, repairing obligations, planning position and anything non-standard — so the reader can see how the value was built, not just what it is.

Commercial land valuation

Land is where valuations diverge most sharply from asking prices. A commercial land valuation turns on planning status — allocated, consented or merely hopeful — together with access, services, ground conditions and the realistic development the site will support, usually tested through the residual method. The same plot can carry very different defensible values for a loan, an accounts entry or a CGT computation, which is why the purpose is confirmed before the valuer starts. Where a site holds longer-term potential, the report can address hope value explicitly rather than leaving it to argument later.

Valuations for secured lending

Loan security work is the most tightly regulated corner of the Red Book: the lender needs an independent valuer, disclosed assumptions, commentary on saleability and market conditions, and a figure that will still make sense if the borrower defaults. Reports are addressed for lender reliance and prepared to the bank's instruction requirements — tell us who the report is for, and the valuer confirms the reliance wording before starting.

Rent reviews, lease renewals and repair liabilities

Lease events call for Market Rent rather than capital value: a rent review assessed on the hypothetical terms the lease prescribes, or renewal terms under the Landlord and Tenant Act 1954. Alongside the valuation work, the panel's building surveyors deal with dilapidations and schedules of condition, so the rent and repair strands of a lease dispute can be handled together.

Disputed commercial valuations

Where a figure is contested — a partnership dissolution, a shareholder exit, an HMRC challenge, an allegedly negligent valuation — the report has to survive cross-examination, not just filing. The panel's valuation expert witnesses prepare CPR Part 35-compliant evidence for court and tribunal proceedings, and the earlier they are involved, the more of the dispute tends to settle on paper.

How much does a commercial property valuation cost?

Commercial property valuation costs depend on the drivers of the work involved: the size and use class of the property, single asset or portfolio, the complexity of the tenancy structure, and the purpose — a secured lending report with reliance wording takes more than an internal sense-check. Fees are always quoted individually and fixed before instruction, with most reports delivered within 5–10 working days of inspection; residential valuations, by comparison, run £250–£500. Wherever you are in the UK, our national panel puts a commercial valuer near you. Get a fixed commercial valuation quote →