Prior to undertaking a valuation instruction, we will establish the purpose of the valuation and the client’s requirements. In this instance, the client is the owner of a high street retail chain, looking to establish the asset value of their retail unit in Bristol, to support informed business decisions regarding their wider property portfolio.
The property is an owner occupied retail unit, situated on a secondary retail street in Bristol. It comprises an attractive period, mid terrace building, arranged as a sales area to the ground and first floor with ancillary office accommodation to the second and third floor.
There was no recent marketing history available for the property as it was originally purchased by the client in the 1980’s and hasn’t been marketed for sale or letting since purchase.
On inspection we noted external factors that impact value of retail property, for example, location, prominence, and neighbouring tenant mix. Internally, we noted details such as the condition and shop fit out, and measured the property on an NIA basis while also undertaking the zoning technique.
There was a lack of recent vacant possession comparables in the locality, therefore, we undertook the income approach and investment method of valuation. In arriving at our opinion of Market Value, we considered various factors, including current market conditions, and the subject property’s characteristics in comparison to recent rental and investment transactions in the locality.
Within our report, as well as advising on our opinion of Market Value we provided local market commentary. In this case we noted that although the property is currently used solely for retail purposes, it is situated in a highly desirable residential area, and is in close proximity to Bristol University. Many of the surrounding commercial properties have had upper parts converted to residential dwellings. Therefore, there could be potential for residential conversion of the upper parts of the subject, subject to obtaining the relevant planning consents, which could positively impact value.
We provided the client with a comprehensive and detailed Red Book valuation report, which outlines our opinion of Market Value enabling them to make well informed business decisions.
Our experienced team is ready to assist with unparalleled regional advice.
