We are Registered Retail Property Valuers with the South African Council for the Property Valuers Profession (SACPVP) and you are obviously reading this, as you require an Independent and Professional Retail Property Valuation.
As experienced Retail Property Valuers, Valuetec has the experience to confidently undertake Retail Property Valuations, which require a specialised level of expertise. We are able to provide a comprehensive Retail Property Valuation Report of all types of retail properties, whether it be a mall or a strip centre configuration:
- Super regional (more than 100 000m2)
- Regional (30 000 – 100 000m2)
- Community (10 000 – 30 000m2)
- Neighbourhood (3 000 – 10 000m2)
- Convenience (300 – 1 200m2)
- Retail Warehouse (Stand-alone; single tenant; >10 000m2)
- Value Centre (Multi-tenanted strip centre; > 10 000m2)
We are able to adapt the structure of a retail property valuation report, to suit your needs in order to ensure that all your retail property valuations adhere to your requirements. Valuetec have experienced Retail Property Valuers based around South Africa and we have offices in Gauteng, Western Cape & Kwazulu-Natal.
Retail properties generate income and therefore generally require the utilisation of a detailed discounted cash flow analysis or the first years income capitalisation method (capitalisation of income approach) when performing a retail property valuation. These methods are described in more detail:
Capitalisation of Income approach: Apply gross open market rentals to the accommodation and then deduct normal landlord outgoings and a management fee to arrive at a net annual income figure. This sum is then capitalised in perpetuity at an appropriate yield.
Discounted Cash Flow Analysis: Project income for a 10 year period (assuming a 10 year cash flow is utilised depending on the expiry dates of the lease agreements in place) based on existing contractual leases, from which forecasted expenses are deducted yearly to arrive at the net annual incomes, which the sum of, are discounted to present value. To the sum of these discounted yearly net incomes, is added the residual sale value, which is the anticipated selling price of the property at the commencement of year 11, also discounted to present value.