Tips and Guides about Commercial Property Valuation Nairobi

Valuing an income stream

A commercial building is a claim on future rent, and everything that affects the reliability of that rent affects value. Lease length, break rights, the tenant's own trading position, arrears history, whether the service charge is fully recoverable. A valuation built on a rate per square metre skips all of it and produces a number that looks defensible until someone reads the leases.

Yields quoted at dinner are not evidence

Market yield is where commercial valuations most often drift. Figures circulate in conversation, get repeated, and acquire authority without any transaction behind them. A yield should be derived from transactions the valuer can identify and describe, with adjustments stated. If the report cannot show that, the whole conclusion rests on hearsay.