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How important is security of income in the valuation of CBD office buildings?

By: Language: English Series: Valuer and Land Economist ; 32(3) August 1992, 190-194(3)Publication details: 1992Subject(s): Summary: Tenant security is generally held to be an important factor in assessing a suitable capitalisation rate for an office investment. This article outlines the results of a survey of valuers in Sydney which found security of income to be second only to location as a determinant of the capitalisation rate for office investments.

Tenant security is generally held to be an important factor in assessing a suitable capitalisation rate for an office investment. This article outlines the results of a survey of valuers in Sydney which found security of income to be second only to location as a determinant of the capitalisation rate for office investments.