The valuation of rented freehold property
French, Nick
The valuation of rented freehold property - 2008 - Journal of Property Investment and Finance 26(2) 2008, 177-181(5) .
Examines the valuation of rack-rented property by implicit and explicit methods to value properties let above or below the current market rent (i.e. reversionary freehold properties). Finds the implicit method does not produce the same capitalisation rate as the discounted cash flow valuation, and that this approach is not rational. Focuses on examples where rentals are below the market rate and where rents are rising.
United Kingdom--
The valuation of rented freehold property - 2008 - Journal of Property Investment and Finance 26(2) 2008, 177-181(5) .
Examines the valuation of rack-rented property by implicit and explicit methods to value properties let above or below the current market rent (i.e. reversionary freehold properties). Finds the implicit method does not produce the same capitalisation rate as the discounted cash flow valuation, and that this approach is not rational. Focuses on examples where rentals are below the market rate and where rents are rising.
United Kingdom--