Commercial Property Valuation Market During Covid-19

On the 15th May we hosted a live Q&A webinar on the Commercial Property Valuation Market during Covid-19 where we've had industry experts including our SVP Sales James Shaw (MRICS) Simon Jones, Paul Greenhalgh and Daniel Owen-Parr discussing the challenges of the industry and how the future of the market is shaping post-pandemic.

We are sharing below the highlights of the webinar and you can also watch the video by following the link provided at the end of this post.

- 20%-30% drop in Loan security valuations in April/May but this is picking up again as lockdown restrictions ease. The market could return to 70%-80% capacity by the end of the year.

- Banks have been spending a lot of time dealing with the various government schemes and some are unlikely to return to the lending market until later in 2020.

- Turnover Rents – Many retailers are trying to re-negotiate with their landlords to pay on this basis and it will become more common albeit more difficult to value.

- Valuers are slowly returning to inspections. PPE will have to be worn in certain instances and it remains to be seen whether there will be supply challenges for the industry.

- Material Uncertainty Clause. Not a get out of jail free card for valuers. It cautions the lender of turbulent market conditions. Certain sectors will see it being removed more quickly than others such as Industrial Property.

- PBSA – Anecdotal evidence was given that 60% of foreign students will not be returning to a certain university town next year.

- Availability of comparables is an issue given lower transaction volumes but there are still transactions happening. Valuers are encouraged to speak to their peer group and colleagues to gather information and get a feel for the market.