The uplift when combining interests or adjacent sites is worth more than the sum of the parts.
Related terms
- 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.
- Special assumption
A valuation assumption that differs from the facts existing at the valuation date, such as assuming planning consent is granted or a lease is surrendered; it m…
- Term and reversion
A valuation method splitting current (term) income from future (reversionary) income.
- Vacant possession value
The value of a property assuming it is sold with no tenant in occupation, giving the buyer immediate use; often differs sharply from the investment value of th…