Commercial property values are driven by a combination of income, market conditions, and property specific factors.

Primary value drivers

Rental income

• Level and stability of rental income
• Rental growth over time
• Lease terms, including lease length and review structures

Tenant quality

• Financial strength and creditworthiness of tenants
• Lease commitments from well-established or long-term tenants
• Tenant diversification (avoiding reliance on a single occupier)

Location

• Proximity to business hubs, transport, and infrastructure
• Local economic activity and employment levels
• Supply and demand dynamics in the area

Capitalisation (cap) rates

• Market yields applied to income
• Changes in interest rates and investor risk appetite
• Broader investment market conditions

Property quality and use

• Building age, condition, and design
• Suitability for current and future tenant needs
• Sector type (office, retail, industrial, healthcare, etc.)

Economic and market conditions

• Economic growth or contraction
• Inflation and interest rate movements
• Sector‑specific trends (e.g. logistics demand, office occupancy)