Following is a basic calculator providing a quick quide to a leased commercial investment property's value.  It is not intended to be anything other than a tool to assist in the understanding of basic principles and we strongly recommend that anyone wanting to invest in commercial property contact the local contact the local Herron Todd White office  for independent professional advice.  For some further tips refer to our basic Invetment Tips page.

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For a more compete understanding this page links to a more detailed discussion on some of the items listed in the calculations below.

Gross Rental Income Collected:	$
Non-Recovered Outgoings:	$
Net Rental Income:	$
Capitalisation Rate:	$%
Value based on above parameters:	$

Gross Rental Income is the gross rental income presently passing to the owner of a property from tenants that occupy the property at the date the assessment of the property is being undertaken.  In the above exercise the Gross Rental Income Collected  is the rental and contribution towards outgoings collected from the tenant by the owner of the property. For more detailed discussion on rental matters visit our "rent to be capitalised " page.

Non-Recovered Outgoings are costs associated with the ownership of the property that are not recovered from tenants.  They can include things such as rates, building insurance, repairs and maintenance, management costs, land tax and common area costs.  For more detailed discussion on rental matters visit our "outgoings" or "non recovered outgoings " page.

Net Rental Income is the net income that passes to the owner of the property at the relevant date.  It is the "Passing Rental Income" less the "Non-Recovered Outgoings". For more detailed discussion on rental matters visit our "rent to be capitalised " page.

Capitalisation Rate is the return required from an investment in a property the nature of which the value is being assessed. For more detailed discussion on rental matters visit our "capitalisation rate " page.

The Value in the calculations above is derived by taking the outgoings from from the gross rental and applying a capitalisation rate (expected return) to the resultant figure to arrive at a value.  This is a simplistic view of what is often a complex assessment requiring extensive local knowledge and experience.  If you are considering a real estate / property investment contact the local Herron Todd White office .