Commercial Property

McLean Gladstone provides comprehensive commercial property valuation services across South Australia, catering to a diverse range of needs including finance, insurance, superannuation, rent reviews and sale and purchase. As a leading independent property valuer and certified property valuer in Adelaide, our team of commercial property valuers offers expert, unbiased assessments for all types of commercial real estate.
 

Our reports are widely accepted by all reputable lenders, including both first and second-tier financial institutions.
 

What We Consider: Key Factors in Commercial Property Valuation. When undertaking a commercial valuation, our licensed property valuers conduct a meticulous assessment, considering a wide array of factors that influence the valuation of property. This ensures a precise and defensible valuation on property that reflects its true current market value. Key considerations include:

• Property Overview & Physical Attributes: This includes the property's size, condition, age, construction materials, number of rooms, gross area and net lettable area.

• Location & Proximity to Amenities: The property's geographical location, its distance from local amenities, transport hubs and commercial centres (e.g., commercial property valuation Adelaide).

• Zoning & Land Use: Applicable zoning regulations, permitted uses and any land use constraints that may impact its current or future value.

• Market Trends & Conditions: The current direction of the market, sales volume, listing trends and buyer profiles (owner-occupiers vs. investors; local, overseas, or interstate buyers).

• Comparable Sales Evidence: Analysis of recent sales of similar commercial properties in the same area, with adjustments made for any differences in features or attributes.

• Income-Generating Potential (for leased assets): For properties that generate income, a thorough analysis of current and potential rental income, lease terms, incentives and outgoings.

• Specific Features: The presence and value contribution of additional features like solar panels, specialised fitouts, or unique architectural elements.

• Risk Factors: Any market or environmental risks, or issues uncovered during inspection or research.
   

Commercial Property Valuation Approaches: Our commercial property valuer team employs a combination of industry-recognised valuation approaches to ensure the most accurate and reliable assessment, tailored to the specific property type and purpose of the valuation.

1. Direct Comparison Method (Sales Comparison Method): This is a primary method, especially for commercial real estate valuation. It involves comparing the subject property to other similar commercial properties that have recently sold in the same area. We calculate the average sales price per square metre of comparable properties and apply it to the subject property's size, making adjustments for any differences. This method works best when there is sufficient comparable sales data available.  

2. Income Capitalisation Method (Income Approach): This method is predominantly used for income-generating properties such as office buildings, retail spaces and industrial properties. It calculates the commercial property value based on its income-generating potential. This involves determining the Net Operating Income (NOI) of the property (operating income minus expenses, excluding interest and taxes) and applying a Capitalisation Rate (Cap Rate), which is an estimate of the return potential of the investment. The formula is: Value = Net Operating Income / Capitalisation Rate. This approach considers both current and future income streams. For 'trade-related properties' like hotels, nightclubs, or service stations, we may use the Profits Method, which reflects the trading potential of the business, while carefully excluding tenant goodwill where applicable.

3. Gross Rent Multiplier (GRM) Method: A simpler income-based approach often used for quick comparisons. It involves dividing the sales price of comparable properties by their annual gross rental income to find a Gross Rent Multiplier. This multiplier is then applied to the subject property's annual gross rental income to estimate its value. While quick, the Income Capitalisation Method is generally preferred as it accounts for operating expenses.  

4. Cost Approach (Summation Method / Replacement Cost Method): This method estimates the cost of replacing or rebuilding the property with a similar one at current construction and labour costs, adjusted for depreciation. It involves a detailed investigation of all the attributes of a property and the many variables that influence its market value.  

5. Hypothetical Development Method: Used for properties with development potential, this method calculates the "as if" complete value of proposed building projects and unit developments. It involves estimating gross proceeds from the completed development and subtracting all associated costs, including development cost determination, taxation implications, borrowing and finance charges, purchase and selling costs and allowances for profit and risk factors. We can also incorporate Internal Rate of Return (IRR) analysis to assess project profitability.
    

Our Comprehensive Commercial Valuation Services (Continued):

1. Commercial Property Valuations for Sale and Purchase: Whether you are considering buying or selling a commercial property, an accurate commercial valuation is paramount. Our pre-purchase and pre-sale commercial property valuations provide an objective assessment of the current market value, ensuring you make informed financial decisions and avoid overpaying or underselling. We cover all types of commercial assets, from small retail spaces to large industrial facilities and office buildings. Our commercial property valuer team conducts thorough inspections and market analysis to deliver precise reports.

2. Commercial Property Valuations for Finance (Mortgage & Loan Security): For businesses seeking financing, a reliable commercial property valuation is a critical requirement for mortgage and loan security purposes. Our commercial real estate valuation services are trusted by both first and second-tier lenders across South Australia. We provide impartial and objective assessments that financial institutions rely upon for secure lending decisions, whether for new loans, refinancing, or equity release. Our valuers take multiple factors into account, including location, condition, zoning and comparable sales, to determine an accurate valuation on property for lending.  

3. Commercial Property Valuations for Insurance & Reinstatement: Ensuring your commercial property is adequately insured is crucial. Our commercial building valuation for insurance and commercial property insurance valuation services provides precise reinstatement valuations. These reports determine the full cost of rebuilding your property in the event of destruction, including demolition, professional fees and escalation in construction costs. This helps you avoid the significant risks of under-insurance and the impact of co-insurance clauses in your policy. We cover all commercial and retail property types, ensuring your business assets are fully protected.

4. Commercial Property Valuations for Superannuation (SMSF): For Self-Managed Super Funds (SMSFs) holding commercial property, SMSF property valuation is a strict compliance requirement. SMSF trustees must value all fund assets at market value annually for financial reporting. Our commercial property valuer team provides objective and supportable data for your SMSF property valuation, meeting ATO guidelines. Auditors are becoming stricter and may require annual valuations; McLean Gladstone offers a fixed-price annual valuation package to make this cost more palatable, ensuring you consistently meet your auditor's requirements.

5. Commercial and Retail Rent Review Valuations: Our specialised commercial and retail rent review valuations and rental determination reports serve both landlords and tenants across Adelaide and regional South Australia. We prepare comprehensive rental review valuation reports for small retail spaces, large commercial spaces and industrial properties. Our commercial property valuer team meticulously reviews property condition, location, zoning, size and up-to-the-minute comparable rental data to determine the correct market rental value. We understand the dynamic nature of the retail market, including lease terms, incentives and outgoings, and can employ the profits method for 'trade-related properties' like hotels.
    

Why Choose McLean Gladstone for Commercial Valuations? As a leading commercial property valuer in Adelaide and throughout South Australia, McLean Gladstone combines extensive local knowledge with rigorous methodology. Our licensed property valuers are highly qualified, with accreditations from the Australian Property Institute (API) and Royal Institution of Chartered Surveyors (RICS). We provide accurate, defensible valuation of property reports that are accepted by all reputable lenders, both first and second tier.

Whether you need a commercial property valuer near you for a specific transaction, commercial real estate valuation services for portfolio management, or a commercial valuation SA for any other purpose, contact McLean Gladstone, your trusted property valuer near you, for expert advice and reliable valuation services.