Commercial Valuation

Windmills undertakes commercial valuation with the intent of determining the estimated market value of a commercial property, which can be a building, villa compound, shop, or office. The market value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction and where the parties had each acted knowledgeably, prudently and without compulsion. Commercial valuation serves several purposes, such as buying or selling a property, obtaining financing, negotiating leases, internal audit, financial reporting purposes and assessing property taxes.

Apart from the standard factors looked into while evaluating a real estate property, commercial valuation may require a more in-depth analysis of the property’s income potential, rental rates, and occupancy rates, current market rate of return / yield as these factors can have a significant impact on the property’s value. Windmills generally relies on Income based approach for undertaking valuation of commercial properties considering that the subject property is usually income generating in nature.