Views Sought On The Future Of Commercial Property Valuations


An independent review into the way commercial property is valued has launched a call for professionals, consumers and stakeholders to get involved – seeking views on whether updated guidance is needed.

Established to maintain confidence in the valuation practices of RICS professionals, the review is seeking evidence around four principle areas that form the foundation of commercial property valuation: the methodology behind valuation, identifying risk, maintaining independence and how value is measured.

Questions the review has posed include whether new, more prescriptive rules are needed and whether the existing Red Book remains the right global framework to deliver quality valuation services.

Views are also being sought on specific ways a valuer’s objectivity and independence in the marketplace can be protected and enhanced, which would allow consumers and stakeholders to continue having full confidence in the advice provided.

Peter Pereira Gray, Independent Chairman of the Valuation Review, said:“Valuers and the users of valuations are working with significant structural shifts in investor sentiment and occupier demand for real estate which is changing the marketplace and public and regulatory expectations of valuers.

“It’s why I have launched a Call for Evidence, setting out the context for the review and the specific areas that I would welcome stakeholders, consumers and industry to respond to.

“I have also appointed an expert advisory group to bring a wide range of experience and challenge to the review from a variety of different perspectives and I thank them for their assistance.”

With the marketplace constantly evolving to respond to rapidly changing consumer trends, the review’s recommendations could see updates being made to the Red Book – an agreed set of international rules and ethical principles applied to the sale and purchase of commercial property.

To assist with the gathering of evidence and provide further advice, a panel of experts from across the market has been convened by Peter. This new working group will be made up of;

  • Isobel O’Regan – currently at Savills in Ireland and a member of the Governing Council at RICS, the majority of Isobel’s thirty-five-year career has specialised in professional services with an emphasis on valuations for secured lending and funds.
  • Michael Brodtman – Michael has ran the valuation department at CBRE for nearly twenty years, advising banks, institutions and REITs and is now closely involved in the development of sustainability services.
  • David Franklin – a Chartered Accountant with over 17 years’ experience working in commercial, operational, audit and advisory functions in the corporate and not-for-profit sectors, David is currently a Director at the Institute of Chartered Accountants in England and Wales.
  • Marc Mogull – Executive Chairman and CIO of Benson Elliot Capital Management, Michael is also a Senior Fellow in Land Economy at the University of Cambridge.
  • Rebecca Worthington currently the Chief Financial Officer (CFO) at iQ Student Accommodation and Non-Executive Director and Chair of the Audit Committee at British Land PLC, Becky will shortly join Canary Warf Group in 2021 as their new CFO.
  • Tim Mould QC – a planning, environmental and public law specialist at Landmark Chambers, Tim has over 30 years’ experience of practice in the field of compulsory purchase, land compensation and rating. Prior to taking silk in 2006, he was standing junior counsel to the Inland Revenue on rating and valuation.
  • Paul Kennedy – holding a Ph.D. and a first-class degree in real estate, Paul is a Visiting Lecturer at the Cass Business School at the University of London. He recently joined J P Morgan Asset Management in January 2020 as Head of Strategy and a Portfolio Manager for European Real Estate.
  • Sarah Fromson – currently Chair of JP Morgan’s £400 million-plus Global Emerging Markets Income Trust, Sarah has over 35 years’ experience in the City and in the investment management industry, including roles such as Chief Investment Risk Officer at RBS Asset Management and Head of Risk at The Wellcome Trust.
  • Mike Prew – a senior Equity Research Analyst at Jefferies LLC based in London, Mike heads the Pan-European Real Estate and covering 30 UK REITs with 30 years' sell-side experience
  • Sandra Robertson – a regulated investment manager responsible for managing long term charitable capital, Sandra is the Chief Investment Officer and Chief Executive Officer on the Board of Oxford University Endowment Management Ltd (OUEM).

Call for Evidence

The review will also involve RICS professionals, stakeholders and consumers in its work through a series of digital events in addition to the call for evidence launched today.

How to get involved

Those interested in submitting their evidence to the review have until 31 March 2021 to respond to the review and can submit feedback here or email comments to:

Valuation Review - Terms of Reference

Following early feedback, the review’s terms of reference has been updated to ensure its work reflects global valuation practices and sustainability issues.

About the review

Established in October 2020, the independent review is led by Peter Pereira Gray, who has been appointed by the RICS Standards & Regulation Board. 

The review itself will specifically consider the ability of valuers to keep pace with market changes including:

  • Changing occupational trends and their impact on investment in real estate
  • Institutional real estate investment becoming more widely understood to be an actively managed business activity, where the management ability has a material impact on worth/value
  • Structural market change (rapidly evolving investor and occupier demand) – impacting on real or perceived valuation of assets. For example, the changing dynamics in retail.
  • The suspension of property funds at perceived market turning points
  • Concerns over the independence of valuers from their clients when reporting on investment performance

About RICS

We are RICS. Everything we do is designed to effect positive change in the built and natural environments.

Through our respected global standards, leading professional progression and our trusted data and insights, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure.

Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact.

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