Property Valuation

Preface
Acknowledgments
PART A: PROPERTY VALUE AND PROPERTY VALUATION
1. Microeconomic Concepts
1.1 Supply and demand, markets and equilibrium price determination
1.2 The property market and price determination
1.3 Location and land use
1.4 The economics of property development
Key points
2. Macroeconomic Considerations
2.1 The commercial property market
2.2 Property occupation
2.3 Property investment
2.4 Property development
2.5 Property and the wider economy
Key Points
3. What is Property Valuation
3.1 Introduction
3.2 The need for valuations
3.3 Determinants of Value
3.4 Valuation Procedures
3.5 Measurement
Key Points
Appendix - Inspection Checklist
4. Valuation Mathematics
4.1 Introduction
4.2 The time value of money
4.3 Yields and rates of return
Key Points
PART B: VALUATION METHODS
5. Comparison Method
5.1 Introduction
5.2 Sources of data
5.3 Comparison metrics
5.4 Comparison adjustment
Key Points
6. Investment Method
6.1 Introduction
6.2 All-risks yield (ARY) methods
6.3 Discounted cash-flow (DCF) methods
Key Points
7. Profits Method
7.1 Introduction
7.2 Method
7.3 Example of a profits method valuation
7.4 Summary
Key Points
8. Replacement Cost Method
8.1 Introduction
8.2 Method
8.3 Application
Key Points
9. Residual Method
9.1 Introduction
9.2 Conventional residual land valuation
9.3 Problems with the residual method
9.4 Cash-flow residual model
Key Points
10. Automated Valuation Models and Computer-Assisted Mass Appraisal
10.1 Introduction
10.2 Method
10.3 Example
10.4 Multiple regression analysis: research and applications
PART C: VALUATION APPLICATIONS
11. Lease Pricing
11.1 Introduction
11.2 Lease incentives
11.3 Alternative lease arrangements
11.4 Valuations at rent review, lease renewal and lease end
Key Points
12. Valuations for financial statements and for secured lending purposes
12.1 Valuing property for financial statements
12.2 Methods of valuing property assets for financial reporting purposes
12.3 Valuations for lending purposes where the loan is secured against commercial property 247
Key Points
13. Valuations for taxation purposes
13.1 Capital Gains Tax and Corporation Tax
13.2 Inheritance Tax
13.3 Business Rates
Key Points
14. Valuations for Compulsory Purchase and Compensation
14.1 Compensation for land taken (compulsorily acquired)
14.2 Compensation for severance and injurious affection
14.3 Disturbance compensation
14.4 Planning compensation
14.5 A note on CGT and compensation for compulsory acquisition
Key Points
15. Specialist Valuations
15.1 Operational entities or 'trade-related' properties
15.2 Valuation of contaminated land
15.3 Synergistic Value
15.4 Special Purpose Valuations
16. Investment Valuations - further considerations
16.1 Short leases and leases with break clauses
16.2 Over-rented property investments
16.3 Valuation accuracy, variance and uncertainty
Key Points
PART D: APPRAISAL
17. Investment Appraisal
17.1 Introduction
17.2 Appraisal Information and Assumptions
17.3 Appraisal methodology
17.4 Risk analysis in property investment appraisal
Key Points
18. Development Appraisal
18.1 Introduction
18.2 Conventional residual profit appraisal
18.3 Cash-flow profit appraisal
18.4 Development risk
18.5 Development Finance
Key Points
GLOSSARY
Index