DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Commercial property is usually valued by capitalising expected net operating income at a rate that reflects interest rates and a risk premium.
How it works
When borrowing costs rise, required returns typically rise too, putting downward pressure on valuations even if rents are unchanged.
A property’s value depends on the income it generates and the return investors require. Both sides of that equation can shift quickly.
What to watch
Structural shifts — in how people work, shop and use logistics — can change the income outlook for whole segments of the market, making location and asset quality decisive.
Key concepts
- Real estate
- Valuation
