Valuation of rent and leasehold interests
Valuation of market rent and of leasehold interests in buildings, non-residential premises and land plots
We value rents and leasehold interests in commercial real estate and land plots.
Market rent is the most probable rent for the use of a property on the open market. The value of a leasehold interest is determined by the tenant's benefit from the difference between the market rent and the contract rent over the remaining term of the lease.
Finappraisal values rent and leasehold interests for leases, auctions and reporting
Entering into and reviewing leases
Supporting the market rent when a lease is entered into and when the rent is indexed or reviewed
State and municipal property
Mandatory valuation when property is leased out (Article 8 of Federal Law No. 135-FZ "On Valuation Activities in the Russian Federation")
Land leases
Annual rent to determine the starting price of an auction for the right to lease state and municipal land plots (clause 14 of Article 39.11 of the Land Code of the Russian Federation)
Transactions with leasehold interests
Value of a leasehold interest on assignment, subletting, pledge and sale of a business
Intra-group leases
Confirming the arm's length level of rents under leases between related parties for tax purposes
Disputes
Supporting the market rent and damages in court in disputes between landlord and tenant
Market rent is determined using the market approach, based on the rents of comparable properties with adjustments for location, area, condition, the composition of operating expenses and the terms of the lease. The value of a leasehold interest is calculated using the income approach, by discounting the difference between the market rent and the contract rent over the remaining term of the lease.
The valuation is carried out in accordance with Federal Valuation Standard FSO No. 7 "Real Estate Valuation". The valuation report sets out a reasoned conclusion of the amount of rent and the value of leasehold interests with supporting analysis for decision-making.