COMMERCIAL PROPERTY VALUATIONS · AUSTRALIA-WIDE
Commercial property valuation
across Australia.
Independent commercial property valuation advice for REITs, fund managers, corporate property owners and private investors. Sovereign Valuations assesses individual assets and portfolios for financial reporting, acquisitions, disposals, finance and contested matters.
Certified Practising Valuers · Investment-grade and specialised assets · National coverage
INVESTMENT ASSETS & PORTFOLIOS
Commercial valuations for REITs and investors.
A commercial property valuation is an independent assessment of a property’s value at a specified date, prepared for a defined purpose. For investment assets, the assessment considers sustainable income, leasing risk, capital requirements and market evidence. Our reports explain how these factors inform the conclusion for investment teams, finance teams and advisers.
Financial reporting & periodic valuations
Fair value assessments at reporting dates, with the valuation methods, material assumptions and supporting evidence documented for management and auditor review.
Acquisitions & disposals
Independent market value assessments for transaction decisions, analysing the income profile, investment evidence and assumptions underpinning the price.
Portfolio valuations
Valuations across multiple holdings, with consistent reporting of the valuation date, basis, methods and key assumptions, and analysis specific to each asset.
Finance & refinancing
Mortgage security valuations addressing the asset, tenancy profile and market evidence, prepared to the lender’s agreed instructions and reliance requirements.
Asset management & leasing
Market rent assessments and valuation advice on lease expiries, rental reversions, vacancy and proposed changes to the property or its leasing profile.
Independent review & disputes
Review of valuation evidence and assumptions, and expert reports for contested matters involving value, rent or compensation.
ASSET CLASSES
Major investments and individual commercial holdings.
We assess leased investments, owner-occupied premises, vacant properties and development land across metropolitan and regional Australia.
Office
CBD and suburban office buildings, strata premises and office portfolios. Analysis covers occupancy, lease expiries, incentives and capital expenditure.
Retail & shopping centres
Neighbourhood, subregional and major shopping centres, large format retail and individual shops. Analysis considers tenancy mix, rental sustainability and leasing risk.
Industrial & logistics
Warehouses, factories, distribution centres and industrial estates. Assessment considers location, building utility, tenant requirements and lease structure.
Development sites
Residential, commercial and mixed-use development land, assessed against planning controls, market demand, development costs and achievable realisations.
Specialised commercial assets
Service stations, childcare centres, medical facilities and other assets requiring analysis of property-specific operations, lease structures and market evidence.
Mixed-use & portfolios
Holdings combining commercial uses and portfolios spanning locations and asset classes, with a separate assessment of each property’s market position.
VALUATION ANALYSIS
How we value commercial property.
We analyse the property’s actual income and obligations, assess its position against the market and explain the inputs adopted in the valuation.
Income & rental reversions
Passing rent compared with market rent, rent review provisions, recoverable outgoings and the timing of potential rental reversions.
Lease profile & tenant exposure
Weighted average lease expiry, tenant concentration, options, break provisions, covenant information and the implications of upcoming expiries.
Vacancy & leasing costs
Existing and projected vacancy, letting-up periods, rent-free periods, incentives and leasing fees, informed by the asset and competing accommodation.
Capital expenditure
Identified capital works, refurbishment requirements and recurring expenditure, including their effect on cash flow and marketability.
Yields & investment returns
Capitalisation rates, discount rates and terminal yields assessed against relevant transactions, asset quality, leasing risk and investment conditions.
Methods & cross-checks
Capitalisation of income, discounted cash flow and direct comparison as appropriate. Development and cost approaches are used where relevant, with differences between methods explained.
VALUATION REPORTING
What your commercial valuation report includes.
Prepared for the agreed purpose and intended users, the report connects the property information, market evidence and valuation conclusion. Material assumptions and information limitations are clearly identified.
Scope & basis
The property interest, purpose, basis of value, valuation date, intended users and terms of the instruction.
Asset & tenancy profile
Title, planning, improvements, occupancy, lease terms, rental income and expenditure relevant to the assessment.
Market evidence
Comparable sales and leasing transactions analysed for location, asset quality, tenancy, timing and other material differences.
Valuation calculations
The adopted methodology, income analysis and key calculation inputs, with the reasoning for yields and other investment assumptions.
Assumptions & sensitivity
Material assumptions and limitations, with sensitivity analysis where it forms part of the agreed scope, showing the effect of changes to key inputs.
Signed conclusion & review
The assessed value and responsible valuer’s credentials and independence, with the valuer available to address management, adviser or auditor questions.
OTHER COMMERCIAL INSTRUCTIONS
Commercial valuation expertise across the full range of work.
We also undertake valuations for private owners, occupiers, accountants, lawyers and public sector clients, from individual suburban premises to complex property interests.
Tax & related-party transfers
Current and retrospective market value assessments for CGT, stamp duty and restructures, at the date specified by the client’s tax or legal adviser.
Market rent & lease disputes
Rental assessments for new leases, market reviews, negotiations, determinations and litigation, with the lease terms central to the assessment.
Compulsory acquisition
Valuation of affected commercial property interests and compensation assessments under the relevant acquisition framework.
Litigation & expert evidence
Independent expert reports for property disputes, with the valuation evidence and reasoning prepared for examination in court or tribunal proceedings.
Family law & ownership disputes
Valuations of commercial property interests for family law settlements, partnership dissolutions and disputes between co-owners.
SMSF & private holdings
Independent valuation of commercial premises held by superannuation funds, family entities and private investors.
SELECTED COMMERCIAL INSTRUCTIONS
Commercial valuation experience in practice.
Published assignments illustrate the range of property interests, valuation purposes and analysis undertaken by our team.
Melbourne CBD development site
Market valuation of a retail-core site approved for a mixed-use hotel and retail project exceeding $450 million. The land assessment used residual analysis and direct comparison.
National accommodation portfolio
Financial reporting valuations of 86 properties across Australia for a not-for-profit disability accommodation organisation.
IGA supermarket properties
Market value and market rent assessments of various IGA supermarkets, including analysis of rent as a percentage of turnover and on a rate-per-square-metre basis.
SENIOR VALUATION EXPERTISE
Commercial property and institutional experience.
Our senior team brings valuation, property investment and funds management experience to commercial instructions.
Daniel Ekins
Director, Valuation and Advisory. Certified Practising Valuer with commercial valuation experience and former REIT funds management roles at Deutsche Bank and Zurich Investment Management.
Peter Ferrier
Managing Director and Certified Practising Valuer. His valuation experience includes investment-grade assets exceeding $1 billion, development sites, specialised property and expert evidence.
Dr David Parker
Senior Counsel and former NSW Valuer General. His experience includes financial reporting and secured lending valuations across office, retail, industrial and hotel property.
ENGAGEMENT & DELIVERY
A defined scope. Direct access to the valuer.
01 · Confirm the instruction
We establish the assets, property interests, valuation purpose, reporting date and recipients, then confirm the fee, delivery programme and information requirements.
02 · Investigate & assess
We inspect the property, review the leases and financial information, analyse market evidence and develop the valuation calculations and assumptions.
03 · Report & respond
We deliver the signed report and discuss the findings with the client and its advisers. The signing valuer responds to questions on the evidence, calculations and conclusion.
COMMERCIAL PROPERTY VALUATION FAQS
Questions about commercial valuations.
How is a commercial property valued?
The valuer inspects the asset, reviews its leases and financial information and analyses comparable sales and rentals. Income-producing property may be assessed by capitalising sustainable net income or using discounted cash flow analysis. Direct comparison provides another approach or cross-check. The methods adopted depend on the property, available evidence and valuation purpose.
How much does a commercial property valuation cost?
Fees depend on the asset type, location, size, tenancy complexity, valuation purpose and reporting requirements. A portfolio or specialist asset requires a different scope from a single commercial premises. Provide the property address, purpose and required date so we can confirm a fee for the instruction.
How long does a commercial valuation take?
Timing depends on inspection access, the completeness of lease and financial information, the number of assets and the complexity of the assessment. We agree the delivery timeframe at engagement. For financial reporting or transactions, tell us the deadline and any management or auditor review dates at the outset.
What is the difference between an appraisal and a valuation?
A sales appraisal generally provides an agent’s estimate of a likely sale price. An independent valuation is a formal assessment for a specified date and purpose, supported by analysis and a signed report from the responsible valuer. Confirm the required report and reliance with your lender, auditor or adviser before commissioning it.
Can you undertake a portfolio or periodic valuation programme?
Yes. We can scope individual valuations, multi-property portfolios and recurring reporting-date instructions. The brief establishes the asset schedule, dates, reporting requirements, delivery programme and the approach to updated property and leasing information.
What information do you require?
For an investment asset, this typically includes the tenancy schedule, leases and variations, income and expenditure information, incentives, capital expenditure forecasts, plans and property details. We confirm a document list for the instruction and identify any material gaps in the information.
Can you work with our finance team and auditors?
Yes. We can discuss the valuation basis and reporting requirements at the outset and explain the methodology, market evidence and material assumptions during review. Report reliance and intended users are agreed as part of the engagement.
Do you value smaller premises and historical property interests?
Yes. We value individual commercial premises as well as major investments. Retrospective instructions assess the property and market at the required historical date, using relevant evidence and records of the property’s circumstances at that time.
Discuss an asset, portfolio or reporting programme.
Provide the property details, valuation purpose and required reporting date. We will confirm the scope, information requirements, fee and delivery timeframe.