Commercial Property Valuation Using the Profits Method
The profits method of property valuation is typically applied to commercial property valuations where the major value component is driven by the profitability of the businesses that occupy the buildings and not simply the land or buildings themselves. Situations where the profits method of valuation would be appropriate include hotels, guest houses, pubs and cinemas.
Despite the financial “facts and figures” practicality of the profits method however, one of the most popular techniques used to value commercial property is still the comparable method.
