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Work out the true value of a trade-related property you intend to buy or sell. Contact us now to learn more or start the process.
Trade-related Expert
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A trade-related property is one which is valued in regard to its trading potential. These premises, whether in the hospitality, medical, education or retail sectors, are designed for a specific purpose and, as such, their value is underpinned by their trading performance. The profits valuation method, also known as the income approach, is almost exclusively used to work out their Market Value.
The Royal Institute of Chartered Surveyors (RICS) describes trade-related properties as follows:
““Some properties are normally bought and sold on the basis of their trading potential. Examples include hotels, pubs and bars, restaurants, nightclubs, fuel stations, care homes, casinos, cinemas and theatres, and various other forms of leisure property. The essential characteristic of this type of property is that it has been designed or adapted for a specific use, and the resulting lack of flexibility usually means that the value of the property interest is intrinsically linked to the returns that an owner can generate from that use.””
Royal Institute of Chartered Surveyors
RICS Valuation – Global Standards
A building valuation will determine the Market Value of a property-only, typically for mortgage lending, insurance, financial reporting or taxation purposes. You will usually use this service to value residential properties or generic commercial spaces that can be occupied by multiple business types, often under tenancy. Trade-related valuations are used for the same purposes, however, they will include the value of the business occupying the premises or, where a business is leasehold, the value of that business specifically.
Typically, a trade-related valuation is required whenever a trade-related property is being transacted, particularly when a sale has been agreed off-market to aid negotiations. Our reports are prepared to an RICS Red Book standard and are suitable for a variety of purposes, including personal advisory, pension fund and taxes. Furthermore, our specialist team can assist as Expert Witnesses for court proceedings, should this be necessary. If you are looking to purchase a trade-related property or specialist business, our reports can be prepared for a lending institution's secured lending procedure to assist with a proposed acquisition or to help existing owners refinance.
Childcare
Our specialist trade-related valuation team can assist in providing formal RICS Red Book compliant valuation reports for children’s day nurseries, to assist in negotiations, an acquisition or refinance.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book compliant valuation reports for a variety of retail businesses including convenience stores (with or without Post Offices), petrol filling stations and garden centres.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book compliant valuation reports for all types of dental practices, including private, NHS and mixed practices along with more specialist orthodontic and cosmetic practices.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book compliant valuation reports for all types of hotel assets, including owner-occupied bed and breakfast/guest houses, mid-market hotels, and large-scale landmark hotels and wedding venues.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book-compliant valuation reports for licensed premises, including public houses and restaurants. The former includes both vacant/unoccupied premises and operational public houses, whether food-led, wet-led and with or without letting accommodation.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book compliant valuation reports for multiple care home types, including elderly residential, nursing and specialist facilities.
Our specialist trade-related valuation team can assist in providing formal RICS Red Book-compliant valuation reports of GP practices for secured lending and partnership restructuring purposes. Our team can also value pharmacies as either stand-alone businesses or integrated ones forming part of a larger health centre facility.
Some of the key components that a trade-related valuation expert will consider during this process include:
If you believe you need a trade-related valuation for a building you want to sell, you can typically expect the process to look something like this:
““The trade-related valuations method is vital but often complex. Our specialists can conduct them in line with the highest industry standards, so you can be confident that the figures will be both accurate and reliable””
Mark Searby
Director
We are confident that we can be your trusted trade-related property valuers for the following reasons:
Are you ready to have a property valued by our trade-related experts? Please call 0207 022 2380 or complete the form below to start the process.
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Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is an indicator used to figure out the overall profitability of a business.
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