Property Valuation

This new edition of the all in one' textbook for the postgraduate study of valuation on real estate courses retains its focus on the valuation and appraisal of commercial and industrial property across investment, development and occupier markets. It is structured from the client perspective and covers single-asset pricing, risk and return issues. The structure of the book has been substantially revised. Part A introduces the key microeconomic principles, focussing on land as a resource, production functions, supply and demand and price determination. The locational aspect of real estate is also introduced. Macroeconomic considerations are categorised by the main market sectors (and their function); the market for land (development), for space (occupation) and for money (investment). The economic context is set and the author then explains why property valuations are required and discusses the main determinants of value and how they might be identified. The mathematics required to financially quantify value determinants are also introduced. Part B of the book describes the methods of valuation; Part C applies these methods to the valuation of a range of property types for a wide variety of purposes; and Part D covers investment and development appraisal. The author introduces valuation activities from a broad economic perspective, setting valuation in its business finance context and combining its academic and practical roots. Changes in this second edition include: less daunting economics expanded companion website with PowerPoint slides for lecturers, self-test Questions & Answers for students: see wiley.com/go/wyattpropertyvaluation up-to-date case studies and sample valuations reference to the newly-published Red Book (the valuer s bible) Property Valuation with its user-friendly format, using tried-and-tested teaching and learning devices and a clear writing style, remains the core text for students on real estate, estate management and land economy degree courses, as well as for fast-track conversion courses for non-cognate graduates.

This new edition of the 'all in one' textbook for thepostgraduate study of valuation on real estate courses retains itsfocus on the valuation and appraisal of commercial and industrialproperty across investment, development and occupier markets. It isstructured from the client perspective and coverssingle-asset pricing, risk and return issues.The structure of the book has been substantially revised. Part Aintroduces the key microeconomic principles, focussing on land as aresource, production functions, supply and demand and pricedetermination. The locational aspect of real estate is alsointroduced. Macroeconomic considerations are categorised bythe main market sectors (and their function); the market for land(development), for space (occupation) and for money(investment). The economic context is set and the author thenexplains why property valuations are required and discusses themain determinants of value and how they might beidentified. The mathematics required to financially quantifyvalue determinants are also introduced. Part B of the bookdescribes the methods of valuation; Part C applies these methods tothe valuation of a range of property types for a wide variety ofpurposes; and Part D covers investment and developmentappraisal.The author introduces valuation activities from a broad economicperspective, setting valuation in its business finance context andcombining its academic and practical roots. Changes in thissecond edition include:* less daunting economics* expanded companion website with PowerPoint slides forlecturers, self-test Questions & Answers for students: see href="wiley.com/go/wyattpropertyvaluation">wiley.com/go/wyattpropertyvaluation* up-to-date case studies and sample valuations* reference to the newly-published Red Book (thevaluer's bible)Property Valuation with its user-friendly format, usingtried-and-tested teaching and learning devices and a clear writingstyle, remains the core text for students on real estate, estatemanagement and land economy degree courses, as well as forfast-track conversion courses for non-cognate graduates.

PrefaceAcknowledgmentsPART A: PROPERTY VALUE AND PROPERTY VALUATION1. Microeconomic Concepts1.1 Supply and demand, markets and equilibrium price determination1.2 The property market and price determination1.3 Location and land use1.4 The economics of property developmentKey points2. Macroeconomic Considerations2.1 The commercial property market2.2 Property occupation2.3 Property investment2.4 Property development2.5 Property and the wider economyKey Points3. What is Property Valuation3.1 Introduction3.2 The need for valuations3.3 Determinants of Value3.4 Valuation Procedures3.5 MeasurementKey PointsAppendix - Inspection Checklist4. Valuation Mathematics4.1 Introduction4.2 The time value of money4.3 Yields and rates of returnKey PointsPART B: VALUATION METHODS5. Comparison Method5.1 Introduction5.2 Sources of data5.3 Comparison metrics5.4 Comparison adjustmentKey Points6. Investment Method6.1 Introduction6.2 All-risks yield (ARY) methods6.3 Discounted cash-flow (DCF) methodsKey Points7. Profits Method7.1 Introduction7.2 Method7.3 Example of a profits method valuation7.4 SummaryKey Points8. Replacement Cost Method8.1 Introduction8.2 Method8.3 ApplicationKey Points9. Residual Method9.1 Introduction9.2 Conventional residual land valuation9.3 Problems with the residual method9.4 Cash-flow residual modelKey Points10. Automated Valuation Models and Computer-Assisted Mass Appraisal10.1 Introduction10.2 Method10.3 Example10.4 Multiple regression analysis: research and applicationsPART C: VALUATION APPLICATIONS11. Lease Pricing11.1 Introduction11.2 Lease incentives11.3 Alternative lease arrangements11.4 Valuations at rent review, lease renewal and lease endKey Points12. Valuations for financial statements and for secured lending purposes12.1 Valuing property for financial statements12.2 Methods of valuing property assets for financial reporting purposes12.3 Valuations for lending purposes where the loan is secured against commercial property 247Key Points13. Valuations for taxation purposes13.1 Capital Gains Tax and Corporation Tax13.2 Inheritance Tax13.3 Business RatesKey Points14. Valuations for Compulsory Purchase and Compensation14.1 Compensation for land taken (compulsorily acquired)14.2 Compensation for severance and injurious affection14.3 Disturbance compensation14.4 Planning compensation14.5 A note on CGT and compensation for compulsory acquisitionKey Points15. Specialist Valuations15.1 Operational entities or 'trade-related' properties15.2 Valuation of contaminated land15.3 Synergistic Value15.4 Special Purpose Valuations16. Investment Valuations - further considerations16.1 Short leases and leases with break clauses16.2 Over-rented property investments16.3 Valuation accuracy, variance and uncertaintyKey PointsPART D: APPRAISAL17. Investment Appraisal17.1 Introduction17.2 Appraisal Information and Assumptions17.3 Appraisal methodology17.4 Risk analysis in property investment appraisalKey Points18. Development Appraisal18.1 Introduction18.2 Conventional residual profit appraisal18.3 Cash-flow profit appraisal18.4 Development risk18.5 Development FinanceKey PointsGLOSSARYIndex