Car park valuations require an understanding of the profits method of valuation and trading potential. In all cases the valuer needs to have specialist expertise and experience of a number of interrelated trading factors in order to establish Market Value for a capital valuation or market rental value for rental value. There are a limited number of open market transactions at any one time and the availability of comparable evidence is complicated by the variety of leasing and management agreement structures. Freehold sale prices are complicated by the need to know the trading record or at least trading potential of the site. In many cases, development potential will have a bearing on the price paid.
Valuers working in the car park market must be sensitive to all the variables of trading potential. See also VPGA 4 Valuation of individual trade related properties.
Related standards and guidance: RICS Red Book: VPGA 4 Valuation of individual trade related properties
Related template: Car park valuation checklist
Related feature: Valuing trading potential