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In 2023, office headline rents in Worcestershire went up by 6.9% and industrial headline rents increased by 13.2%. There was also an increased spotlight on rental properties in the current economic client. Meanwhile yields from commercial property are rising because of inflation.

So how can a Commercial Property Valuation help both Tenants and Landlords in this challenging economic climate?

1. Rent is often one of the most significant expenses for businesses. Knowing the accurate value of the property enables you to budget more effectively and plan your finances accordingly. A precise valuation allows you to allocate resources strategically, ensuring that your business remains financially stable and sustainable.
2. For commercial property investors with diversified portfolios, regular valuations are indispensable for effective portfolio management. Valuation reports help assess the performance of individual properties within the portfolio, and identify those that may require repositioning. 
3. Tenants who are overpaying for rent will see a detrimental effect on their bottom line.  Conversely, underestimating the value of the property could lead to Landlord/Tenant disputes as the rent may need to be increased substantially to cover costs. 
4. Self-Invested Personal Pension Scheme (SIPP) or a Small Self-Administered Scheme (SSAS) enable commercial property investors to maximise the tax efficiency of their pension. GJS Dillon can assist with the regular RICS Red Book Valuations required by the Pension Provider. 
5. Knowing the true value of a property helps with long-term decision making. Whether that decision is expansion, relocation or investment, any choices made will be based on an expert opinion.

Anneka Wilks is GJS Dillon’s Associate Director, Valuations & Professional Services. For further information about Commercial Property Valuations contact Anneka at annekawilks@gjsdillon.co.uk or Jonathan Mountford at jonathanmountford@gjsdillon.co.uk or call 01905 676169 (Option 3)