-
Mall & Department Store Valuation
Shopping Mall Valuation in Thailand? Nowadays, shopping malls have been developed into many forms, such as department stores, superstores, community malls, and plazas. It is considered to be a type of business operation. Hence, the most suitable valuation method to use is the ‘Income Approach’ together with the two most significant variables: the number of rental units and the location of each unit, which will affect the rental fee as per contract (square meter) determined by the project. After that, the result will be compared with the market rental rate and comparison of project information. There are various factors to take into consideration, for example, the primary tenant that influences that mall. However, they may not have to pay the total rent. In this case, there will be a difference in incentive compensation in the form of a hidden rate that needs to be considered and affects the property value. The documents required in shopping mall valuation are the floor plan of the sales area, a summary of tenant details, rental conditions, etc.
