Commercial Real Estate: Valuation Challenges in a Disputes Context
The commercial real estate valuation market is in a period of transition, further accelerated and complicated by the COVID-19 pandemic. Structural and technical issues within the market will continue to create uncertainties which will inevitably impact the valuation of commercial real estate for contentious matters.
The industry has long been reconciled to the subjective nature of commercial property valuation, but current trends have exacerbated existing issues. Values have previously followed a cyclical pattern, but valid concerns have arisen recently that long-term changes to occupier business models will cause valuations to vary to a greater extent than before.