Valuation > Valuation practice and methodology > Valuation calculations > Profit rent: worked examples
Profit rent: worked examples
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The property
The valuation is of a tenant's interest in an office in a town centre.
The tenant occupies the property on a lease with 15 years unexpired and pays a fixed rent of £10,000 per annum. The rental value of the property is £120,000 per annum. There is no...
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Resources
- Glossary
- Books
- Features
- RICS professional guidance
- Introduction to valuation calculations
-
Traditional investment approach: worked examples
- Single high street shop: net initial yield
- Single industrial unit: net initial yield
- Single industrial unit: net initial yield: weaker covenant
- Single industrial unit: tenant's break
- Single industrial unit: tenant's break with explicit costs
- Single high street shop: hardcore
- Single high street shop: hardcore weaker covenant
- Single high street shop: term and reversion
- Single high street shop: short unexpired lease
- Single industrial unit: short unexpired lease (1): internal repairing terms
- Single industrial unit: short unexpired lease (2)
- Existing vacant office block
- Partially occupied office block: equivalent yield
- High street shop with an outstanding rent review
- Parade of 5 shops with a vacant unit
- Parade of 5 shops with a vacant unit: running void with costs
- Office let to a single tenant with minimum uplifts
- Office let to a single tenant with minimum uplifts: weaker covenant
- Multi-let office block
- Multi-let office block with voids
- Multi-let office block with short unexpired leases
- Multi-let office block with short unexpired leases and poor reletting prospects
- Multi-let industrial estate on short-term leases (1)
- Multi-let industrial estate on short-term leases (2)
- Single industrial unit with reversion to land value
- Single industrial unit with vacant possession: income approach
- Single industrial unit with ancillary income
- Single industrial unit with vacant possession: comparable
- RPI inflating lease
- RPI inflating lease: with explicit reversion
- Hotel let on a turnover lease
- Hotel let on a turnover lease subject to a minimum rent
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Leaseholds: worked examples
- Single high street shop: long leasehold interest: single rate
- Single high street shop: geared long leasehold interest
- Single high street shop: freeholder's interest of a geared long leasehold interest
- Industrial unit with short unexpired lease
- Surrender and renewal (1)
- Surrender and renewal (2): nil premium
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Over-rented property: worked examples
- Over-rented high street shop
- Over-rented high street shop with a poor covenant
- Over-rented bank shop with a long lease
- Over-rented bank with a tenant break option
- Over-rented high street shop with a long lease: discounted cash flow approach
- Substantially over-rented office: discounted cash flow approach
- Substantially over-rented office with strong covenant: discounted cash flow approach
- Investment: cash flow approach: worked examples
-
Ground leases: worked examples
- Residential ground lease property: freeholder's interest
- Residential ground lease property: premium for a new lease with more than 80-year unexpired term
- Residential ground lease property: premium for a new lease with less than 80-year unexpired term
- Ground lease commercial property
- Ground lease commercial property: initial yield
- Ground lease commercial property: short lease
- Profit rent: worked examples
-
Development valuations: worked examples
- Development site for a single house: profit on gross development value
- Development site for a single house: profit on cost
- Development site for a single house: no planning permission
- Acre of land for the development of an industrial unit
- Existing office block for conversion to residential
- Existing office block for conversion to residential: cash flow
- Existing office block for conversion to residential without planning permission: cash flow
- Existing office block subject to a short-term occupier with reversion to conversion to residential without planning permission: cash flow
- Valuation of a 24-acre development site (1)
- Valuation of a 24-acre development site (2)
- Small mixed-use development (1)
- Small mixed-use development (2)
- City-centre office development site
- City-centre office development site, prelet to a strong covenant
- City-centre office development site, prelet in part
- Development site for 6 houses
- Development site for 6 houses: cash flow approach
- Development site for 6 houses: cash flow approach: phased approach
- Development site with hope value
- Land: worked examples
-
Profits valuations: worked examples
- Valuation of a 50-bedroom hotel
- Major city-centre hotel
- Managed workspace let to 50 occupiers
- Managed workspace let to 60 occupiers
- Student hall of residence
- Student hall of residence: income capitalisation
- Self storage property
- Mature self storage property
- Mature self storage property with risk of competition
- Surface car park in a town centre
- Multi-storey car park
- Multi-storey car park in disrepair
- An 18-hole golf course
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Depreciated replacement cost: worked examples
- Newly-built primary school
- Victorian primary school
- Secondary school
- Town centre fire station: 30 years old: instant build
- Town centre fire station: brand new: instant build
- Semi-rural fire station: instant build
- Football stadium: purpose-built
- Football stadium: over-specified
- Swimming pool: 2 components
- Swimming pool: 3 components
- Old swimming pool: 2 components
- Synergistic value: worked examples
- Resources