Brush up vals

Question 1

How do you value a retail unit?

Answer 1

Let Retail unit - adopt the investment method.

Analyse Net Income (deducting costs) - capitalise using ARY derived from recent investment transactions of comparable retail units.

I’d review the lease terms in detail — including rent, rent review pattern, remaining term, breaks, and repairing obligations — to assess the risk profile and influence the yield adopted.

Costs - void (rates/insurance), management fees, letting fees, repair and maintenance if not FRI

Question 2

What is All Risk Yield?

Answer 2

fully let property let at MR reflecting all the prospects and risks attached to the particular investment

Question 3

What is a Gross Yield?

Answer 3

Yield NOT adjusted for purchasers costs

Question 4

What is Net Yield

Answer 4

Yield adjusted for purchasers costs

Question 5

Equivalent yield

Answer 5

Average weighted yield when a reversionary property is valued using an initial and reversionary yield

Question 6

Initial yield

Answer 6

Simple income for current income and current price

Question 7

Reversionary Yield

Answer 7

MR/Price of investment let at a rent below the MR

Answer 8

Growth