Vickery Holman was instructed to undertake a valuation of a retail property situated at Commercial Street, Gloucester, for loan security purposes. The property comprises a mid-terrace retail unit arranged over ground and basement, located within a busy secondary retail pitch in Gloucester city centre. Surrounding occupiers include a mix of independent retailers and national chains, benefitting from good levels of footfall and accessibility.
A formal valuation to support a secured lending application was required. The property was let to a on a commercial lease, and the lender required confirmation of the asset’s Market Value and Market Rent in accordance with RICS Valuation – Global Standards (Red Book). Establishing an appropriate value required careful consideration of lease terms, passing rent, and recent transactional evidence within the local retail market.
Following a detailed inspection of the premises, we analysed comparable rental and investment transactions across Gloucester and the wider area. We considered the lease structure, tenant covenant strength, and the prevailing demand for high street retail units.
By applying our in-depth knowledge of the local market, we were able to benchmark the passing rent against comparable evidence and assess the investment yield appropriate for a property of this nature and location.
The valuation provided the lender with an accurate, evidence-based opinion of value, enabling the loan security to be approved with confidence. The valuation demonstrating the property’s stability and viability as security.
