Commercial Property Valuation: Methods and Case Studies

  • 5h 28m
  • Giacomo Morri, Paolo Benedetto
  • John Wiley & Sons (UK)
  • 2019

A practical guide to the best approaches for commercial real estate value assessment

Commercial Property Valuation provides a comprehensive examination of principles and methods of determining the accurate value of commercial assets. This invaluable resource covers all key elements of commercial property valuation, including valuation queries, real estate report structure, market analysis, capitalization and discount rates estimation, and more. This book details the economic characteristics unique to commercial property and illustrates property-specific risk factors and mitigation strategies. Drawing from years of professional and academic experience, the authors provide accurate information on multiple valuation approaches suitable for commercial real estate such as sales comparison, income capitalization and residual land value. Favoring real-world practicality over complex formulas, this book provides a powerful set of tools to assist readers in selecting and applying the best valuation approach to various situations. Actual case studies of office buildings, hotels, high street retails, and residential developments allow readers to understand and apply appropriate valuation methodologies.

Commercial property is a major investment class that offers abundant opportunities but poses unique risks. Thorough and inclusive knowledge is essential to success in this complex and competitive sector of real estate. This book provides expert coverage of critical topics allowing readers to:

  • Identify the unique economic characteristics and potential risks of commercial real estate valuation and investment
  • Focus on methods specific to commercial real estate valuation
  • Learn how to select and apply the appropriate valuation method in a variety of scenarios
  • Access sample Excel spreadsheets and ancillary online resources including slides and useful Internet links

Commercial Property Valuation is an essential resource for investors, appraisers, consultants, accountants, and students in real estate courses.

About the Authors

GIACOMO MORRI, PhD, MRICS, is Faculty Deputy and Associate Professor of Practice in Corporate Finance and Real Estate at SDA Bocconi School of Management (Milan, Italy) and a lecturer of Real Estate Finance at Bocconi University (Milan, Italy). He served as a Director of the Master in Real Estate and the Executive Master in Corporate Finance and Banking, and was in charge of real estate executive education. Giacomo is former President and a board member of the European Real Estate Society. He is a freelancing advisor for several real estate companies and asset managers, a non-executive director at UnipolSai Investimenti SGR, and a RICS Registered Valuer. He is also on the advisory board of several real estate funds and a board member of various real estate companies.

PAOLO BENEDETTO, MRICS, is Advisory & Valuation Director at Agire – IPI Group, an Italian real estate service company. His specialization is in real estate valuations. He is an Academic Fellow of Real Estate Finance at Bocconi University (Milan, Italy) and a Fellow of Corporate Finance and Real Estate at SDA Bocconi School of Management (Milan, Italy). Paolo is a member of the Italian board of the Royal Institution of Chartered Surveyors (RICS) and a RICS Registered Valuer.

In this Book

  • Foreword by Andrew Baum
  • Foreword by Vincent Vinit
  • Introduction to Property Valuation
  • Economic Characteristics and Elements of Risks of Properties
  • Market Analysis
  • A New Simple Classification of Valuation Methods
  • Sales Comparison Approach Methods
  • Income Capitalisation Comparison Approach Methods
  • Property Return Rates
  • Structure of the Valuation Report
  • Office Property Appraisal
  • High Street Retail Unit Appraisal
  • Hotel Appraisal
  • Development Project Appraisal
  • Glossary
  • Bibliography