The value of an asset to a specific owner, given their particular circumstances and assumptions.
Related terms
- Market rent
The estimated rent at which an interest would let on the valuation date between willing parties on appropriate lease terms in an arm's-length transaction; the…
- Market value
The estimated price an asset would fetch in an arm-length transaction on the valuation date.
- Marriage value
The uplift when combining interests or adjacent sites is worth more than the sum of the parts.
- Prime yield
The lowest, keenest yield achievable on the best-quality asset in the strongest location, let to a strong covenant; the benchmark for a market's pricing.
- Profits method
A valuation approach for trade-related property (hotels, cinemas, petrol stations) that derives value from the sustainable earnings the business generates, rat…
- Red Book
The RICS Valuation Global Standards governing professional valuation practice.
- Residual land value
GDV less all development costs and required profit; what a developer can afford to pay for land.
- Reversionary potential
The scope for future income growth in an interest that is currently under-rented, where rent can rise to market level at the next review or lease event.