Valuation of a Commercial Property in Pennant Hills
Post date: May 22, 2015 7:22:19 AM
The subject property is tenanted. As such, we have adopted the valuation figure determined within Capitalisation Approach as the primary method and Direct Comparison as a check method and supportive valuation approach.
Capitalisation Approach involves the assessment of the estimated net market rental income at an appropriate yield. This yield is derived from sales evidence. The assessment of net market rental income is calculated from the current market gross rentals by deducting current outgoings and an on-going vacancy factor.
We considered a fully leased market yield of around 7% net which is considered appropriate in the current market.