Property Valuation Report Template (RICS Red Book, IVS)

Valuation report: terms of engagement, basis of value, assumptions, inspection, tenancies, evidence, income approach, sensitivity, opinion of value

Immobilier & Services générauxCompletRICS Valuation Global Standards (effective 31 Jan 2025); IVS (effective 31 Jan 2025)property valuation reportMis à jour 29 oct. 2026

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Mode d'emploi: Use it when a valuer reports an opinion of value for a purchase, loan, accounts or a fund. Fill the terms of engagement and the basis of value with assumptions and special assumptions first. The main pitfall is a special assumption or a client restriction hidden in the narrative instead of stated next to the figure.

Aperçu

Property Valuation Report: [Property name, interest valued and valuation date]

A written valuation report for a real property interest: the terms of engagement, the basis of value and assumptions, the inspection and investigations, the property and its tenancies, the market evidence, the approach and calculation, the uncertainty, and the opinion of value. Structure aligned with RICS Valuation, Global Standards (the "Red Book Global Standards", effective 31 January 2025) and the International Valuation Standards (IVS) published by the IVSC on 31 January 2024 and effective 31 January 2025, with notes for the European Valuation Standards 2025 (TEGoVA) and USPAP (US). Replace every [bracketed] value and every row marked Example. This is a documentation format, not valuation, legal or financial advice: a valuation must be prepared by a qualified valuer under the standards and law that apply to the instruction.

Document control

Field	Value
Report reference	[VAL-QPB-2026-01]
Property	[Quelmont Park Building B, address]
Interest valued	[Example: Freehold subject to and with the benefit of the occupational leases]
Client	[Varrowby Property Fund]
Purpose	[Example: Acquisition decision and internal investment committee]
Valuation date	[Example: 2026-09-30]
Report date	YYYY-MM-DD
Basis of value	[Example: Market value]
Valuer	[Name, qualification, registration number, firm]
Version and status	[1.0, Final]
Classification	[Confidential to the client]

Approvals

Role	Name	Date
Responsible valuer	[@name]	YYYY-MM-DD
Reviewing valuer (internal quality check)	[@name]	YYYY-MM-DD
Client acknowledgement of terms	[@name]	YYYY-MM-DD

Revision history

Version	Date	Author	Change summary
0.1	YYYY-MM-DD	[@name]	Draft for factual accuracy check by the client
1.0	YYYY-MM-DD	[@name]	Example: Final; tenancy data corrected for U-G02 arrears

Terms of engagement and scope of work
Basis of value, assumptions and special assumptions
Inspection, investigations and data
The property
Tenure and tenancies
Market commentary and evidence
Valuation approach and method
Calculation
Valuation model
Uncertainty and sensitivity
Opinion of value and compliance statement
Glossary and references

How the standards map to this report

Report section	RICS Red Book Global Standards 2025	IVS (effective 31 January 2025)	Other frameworks (examples)
1 Terms of engagement	VPS 1 Terms of engagement	IVS 101 Scope of Work	USPAP: scope of work and engagement; TEGoVA EVS 2025
2 Basis of value	VPS 2 Bases of value, assumptions and special assumptions	IVS 102 Bases of Value	EVS 2025 bases of value
3 Inspection and data	VPS 4 Inspections, investigations and records	IVS 104 Data and Inputs	USPAP record keeping
7 and 8 Approach	VPS 3 Valuation approaches and methods	IVS 103 Valuation Approaches; IVS 400 Real Property Interests; IVS 410 Development Property where relevant	USPAP Standard 1 (real property development)
9 Model	VPS 5 Valuation models	IVS 105 Valuation Models
11 Report	VPS 6 Valuation reports	IVS 106 Documentation and Reporting	USPAP Standard 2 (real property reporting)
Ethics and independence	PS 1 and PS 2 (professional standards on compliance and on ethics, competence, objectivity and disclosure)	IVS 100 Valuation Framework	National regulator rules

1. Terms of engagement and scope of work

Item	Entry
Client and intended users	Example: Varrowby Property Fund only. No reliance by any lender without written consent
Purpose	Example: To support a purchase decision
Asset and interest	Example: Freehold of Quelmont Park Building B, subject to 5 occupational leases
Valuer status	Example: External valuer, no previous involvement with the property or the seller in the last 24 months
Conflicts disclosed	Example: None. The firm values a neighbouring property for another client; information barrier in place
Valuation date	Example: 2026-09-30
Basis of value	Example: Market value
Currency	Example: USD
Assumptions and special assumptions	See section 2
Extent of inspection and investigations	See section 3
Information relied upon	Example: Seller's rent roll and leases, measured survey, property condition report PCA-QPB-2026
Restrictions on use, distribution and publication	Example: Not to be published or quoted without written consent
Liability cap and fee	[As agreed in the engagement letter]
Standards applied	Example: RICS Valuation, Global Standards (effective 31 January 2025), which incorporate the IVS

The scope of work must be enough for the purpose. A purchase decision for an investment committee usually needs a full inspection, a review of the leases and a check of planning and title information, while a desktop update for a quarterly fund report may rely on the previous inspection if nothing material has changed. Say which of these applies and why. If the client restricts the scope (for example no internal inspection), record the restriction and its effect on the reliability of the figure.

2. Basis of value, assumptions and special assumptions

2.1 Basis of value

Item	Entry
Basis	Example: Market value
Source of definition	Example: IVS 102 Bases of Value, as adopted in Red Book VPS 2 (see your licensed text for the definition)
Other bases considered	Example: Investment value (worth) to the client was not requested

IVS 102 recognises several bases, including market value, market rent, equitable value, investment value (worth), synergistic value and liquidation value. Other bases may be required by law, regulation or a contract, for example a fair value measurement for financial reporting or a mortgage lending value in some European markets. State which framework sets the basis when it is not one of the IVS bases, and do not mix bases within one figure.

2.2 Assumptions

ID	Assumption	Effect if wrong
ASM-01 (Example)	Good and marketable title, free of onerous restrictions not disclosed	Value could fall; title report needed
ASM-02 (Example)	Lettable areas as in the measured survey dated 2026-08-12	Rent and value change in proportion
ASM-03 (Example)	No contamination beyond that noted in section 4	Value could fall; Phase II pending
ASM-04 (Example)	Current use is lawful and has all required permits	Value could fall
ASM-05 (Example)	Plant and services comply with current regulations, except as in the condition report	Further costs

2.3 Special assumptions

ID	Special assumption	Reason	Agreed with client
SA-01 (Example)	None for the main figure		YYYY-MM-DD
SA-02 (Example)	Supplementary figure assuming unit U-202 is let at market rent on the valuation date	Requested for the investment committee	YYYY-MM-DD

3. Inspection, investigations and data

Item	Entry
Inspected by and date	Example: [Valuer name], 2026-09-16
Extent	Example: External and internal, all common parts, roof, plant rooms, 4 of 5 let units and vacant unit U-202
Not inspected	Example: Unit U-102 (clinic in use), roof void above U-201
Measurement	Example: Measured survey provided by the client; spot checks agreed within 1%
Documents	Example: Leases and abstracts, rent roll as at 2026-09-30, service charge budget, energy certificate, condition report
Enquiries	Example: Planning portal search, flood map check, local agents for letting evidence
Data not verified	Example: Seller's statement of no disputes, except the service charge query on U-101

3.1 Data quality log

ID	Input	Source	Check performed	Reliability
DAT-01 (Example)	Passing rents	Rent roll and leases	Reconciled to leases and bank receipts for 3 months	High
DAT-02 (Example)	Market rents	4 lettings within 2 km, 2025 to 2026	Confirmed with agents	Medium
DAT-03 (Example)	Capitalisation rate	3 sales, see section 6	Confirmed with buyers' agents	Medium
DAT-04 (Example)	Capital costs	Property condition report	Read in full; not independently costed	Medium

4. The property

4.1 Location and site

Example: Quelmont Park is an established business park 6 km from the city centre, served by a tram stop 400 m away. Building B stands on a 0.6 ha site with 120 parking spaces on 1,800 m2 of surfaced car park. The neighbouring site has a right of way across the car park (title finding DD-T07), with no loss of spaces.

4.2 Building and accommodation

Unit	Floor	Use	Net lettable area m2
U-G01 (Example)	Ground	Laboratory office	900
U-G02 (Example)	Ground	Retail	300
U-101 (Example)	First	Studio and office	1,000
U-102 (Example)	First	Clinic	500
U-201 (Example)	Second	Office	1,000
U-202 (Example)	Second	Office, vacant	500
Total			4,200

4.3 Condition

Example: The property condition report PCA-QPB-2026 forecasts 591,900 of costs over 10 years plus a 10% contingency (651,090 in total), of which 21,500 is immediate. Most of the forecast relates to items that a buyer would expect in a 2004 building (roof membrane, lifts and chillers). The immediate items are assumed to be repaired by the seller before completion; the forecast is reflected in the choice of capitalisation rate rather than deducted, because the comparable sales were of buildings of similar age and condition.

4.4 Environmental, sustainability and planning

Topic	Finding	Effect on value
Contamination (Example)	Former print works use on part of the site before 1990; Phase II pending	Assumption ASM-03; reported as a risk
Flood risk (Example)	Low on public mapping	None
Energy performance (Example)	Certificate rating in the middle band; lighting and chillers upgrade planned	Considered in yield; minimum energy rules to be monitored
Planning (Example)	Lawful office use; U-102 clinic permit in place	None

Explain how sustainability and climate factors affect the evidence, and avoid double counting: if the comparable buildings have similar energy ratings, the yield already reflects the market's view.

5. Tenure and tenancies

Unit	Tenant	Expiry	Break	Passing rent	Market rent	Notes
U-G01 (Example)	Kestrimo Labs	2031-06-30	None	202,500	198,000	Review 2026-07-01 outstanding, upward only, no increase expected
U-G02 (Example)	Saltmarsh Bikes	2028-12-31	2026-12-31	78,000	78,000	Arrears of 15,000; break risk
U-101 (Example)	Fenwyn Print Studio	2032-03-31	2027-09-30	210,000	215,000	Review 2027-04-01
U-102 (Example)	Dovecroft Dental Clinic	2034-09-30	2029-09-30	115,000	112,500
U-201 (Example)	Quorran Insurance Brokers	2027-12-31	None	215,000	215,000	Renewal talks
U-202 (Example)	Vacant			0	110,000	Marketing
Total				820,500	928,500

Example: the weighted average unexpired lease term is 4.24 years to expiry and 2.20 years to first break, weighted by passing rent. Arrears total 27,783.33, of which 3,200 is a disputed service charge balance.

6. Market commentary and evidence

Example: Occupier demand for mid-size offices near public transport is stable; vacancy in the submarket is about 9% according to two local agents. Investment volumes are lower than two years earlier, and buyers price in capital expenditure for older buildings.

6.1 Investment evidence

ID	Property (fictional)	Date	Area m2	Price	Price per m2	Net initial yield	Comparison with subject
CMP-01 (Example)	Linmoor Court	2026-06	3,800	9,600,000	2,526	6.90%	Similar age, better tenant mix
CMP-02 (Example)	Harnet House	2026-03	5,100	11,900,000	2,333	7.40%	Older services, more vacancy
CMP-03 (Example)	Saxbridge Yard 4	2025-11	2,900	7,400,000	2,552	6.75%	Refurbished 2022, longer leases

Prices exclude purchaser's costs. Example: the subject sits between CMP-01 and CMP-02: shorter income than CMP-01 and CMP-03, a better condition than CMP-02. A capitalisation rate of 7.25% on stabilised net operating income was judged appropriate.

6.2 Letting evidence

ID	Property (fictional)	Date	Area m2	Headline rent per m2	Incentive	Net effective rent per m2
LET-01 (Example)	Linmoor Court, floor 2	2026-05	600	225	6 months rent-free on 5 years	202.50
LET-02 (Example)	Harnet House, floor 1	2026-02	800	210	3 months rent-free on 5 years	199.50

Example: net effective rent spreads the rent-free period over the term (225 x 54 / 60 and 210 x 57 / 60). The market rents adopted in section 5 are headline rents (215 to 225 per m2 for the office and clinic units), so the rent-free period a new tenant of U-202 would expect is deducted separately in section 8, line 8.

7. Valuation approach and method

Approach	Used?	Reason
Income approach, direct capitalisation of stabilised income	Example: Yes, primary	Investors price multi-let offices on income; good yield evidence
Income approach, discounted cash flow	Example: No, check only	Client did not require it; useful when income changes a lot over time
Market approach, price per m2	Example: Yes, cross-check	Three sales of similar buildings
Cost approach	Example: No	Not used for income-producing property with market evidence

Example: the method capitalises the market rent of the whole building, less a structural vacancy allowance and non-recoverable costs, then deducts the costs of letting the vacant unit and the purchaser's costs. The difference between passing and market rent on the let units is small: over-renting of 4,500 a year on U-G01 and 2,500 on U-102 against under-renting of 5,000 on U-101, a net 2,000 a year (0.22% of market rent). It was not adjusted. A term-and-reversion or cash flow method would be needed if these differences were material.

8. Calculation

Line	Item	Basis	Amount
1	Market rent, all units	Section 5	928,500
2	Less structural vacancy allowance	5% of line 1	(46,425)
3	Effective gross income	Line 1 less line 2	882,075
4	Less non-recoverable costs	Service charge shortfall, management, insurance excess	(45,000)
5	Stabilised net operating income	Line 3 less line 4	837,075
6	Capitalised at 7.25%	Line 5 divided by 0.0725	11,545,862
7	Less void on U-202	9 months of 110,000	(82,500)
8	Less rent-free to new tenant of U-202	6 months of 110,000	(55,000)
9	Less letting fees	15% of 110,000	(16,500)
10	Less void costs on U-202	Service charge share of 500 m2 at 60 per m2 a year for 9 months	(22,500)
11	Value before purchaser's costs	Line 6 less lines 7 to 10	11,369,362
12	Net of purchaser's costs at 6.8%	Line 11 divided by 1.068	10,645,470
13	Market value, rounded to nearest 50,000		10,650,000

Example: the figure equals 2,536 per m2, within the range of the sales evidence (2,333 to 2,552 per m2). It shows a net initial yield of 6.82% on passing rent less non-recoverable costs and a reversionary yield of 7.77% on market rent less those costs, both on the value plus purchaser's costs.

9. Valuation model

Item	Entry
Model	Example: Firm's spreadsheet template v4.2 for direct capitalisation
Built or adapted by	[@name]
Checked by	[@name], independent recalculation of lines 1 to 13
Automated tools or data feeds	Example: None; comparables entered manually
Limitations	Example: Single-period capitalisation; does not model lease events year by year

10. Uncertainty and sensitivity

10.1 Sensitivity to capitalisation rate and market rent

Values rounded to the nearest 50,000, holding the lease-up deductions fixed. Change against the reported figure in brackets.

Capitalisation rate	Market rent 5% lower	Market rent as adopted	Market rent 5% higher
7.00%	10,450,000 (-1.9%)	11,050,000 (+3.8%)	11,600,000 (+8.9%)
7.25%	10,100,000 (-5.2%)	10,650,000 (0.0%)	11,200,000 (+5.2%)
7.50%	9,750,000 (-8.5%)	10,300,000 (-3.3%)	10,850,000 (+1.9%)

10.2 Uncertainty statement

[Example: The valuation is not reported as subject to material valuation uncertainty. The key risks are the U-G02 break on 2026-12-31, the pending Phase II investigation (ASM-03) and the limited number of recent sales.]

11. Opinion of value and compliance statement

Example: Our opinion of the market value of the freehold interest in Quelmont Park Building B, subject to the occupational leases, at 2026-09-30 is 10,650,000 (ten million six hundred and fifty thousand US dollars), exclusive of transfer taxes and purchaser's costs.

Example, supplementary figure under SA-02: [Figure assuming U-202 is let at market rent, computed only if the client confirms the request.]

Item	Entry
Compliance	[Example: Prepared in accordance with RICS Valuation, Global Standards (effective 31 January 2025), which incorporate the IVS]
Departures	[None, or each departure with its reason]
Valuer's independence	[Statement as agreed in the terms]
Reliance and publication	[Client only; no publication without consent]
Signature	[Responsible valuer, qualification, date]

11.1 Traceability

Report element	Evidence or input	Section
Market rent 928,500	LET-01, LET-02, rent roll	5, 6.2
Capitalisation rate 7.25%	CMP-01 to CMP-03	6.1
Lease-up deductions 176,500	Letting evidence, agents' advice	8 lines 7 to 10
Condition	PCA-QPB-2026	4.3
Tenancy data	Rent roll as at 2026-09-30, lease abstracts	5

12. Glossary and references

Term	Meaning in this report
Market rent (ERV)	The rent the valuer expects a unit to let for on the valuation date
Net operating income	Income after vacancy allowance and non-recoverable costs
Capitalisation rate	The rate that converts one year of stabilised income into a capital value
Net initial yield	Current net income divided by value plus purchaser's costs
Reversionary yield	Net market rent divided by value plus purchaser's costs
WAULT	Weighted average unexpired lease term, weighted by rent
Special assumption	An assumed fact that differs from the actual facts at the valuation date

References (editions checked 2026-10-30):

RICS Valuation, Global Standards, effective 31 January 2025: VPS 1 to VPS 6 numbering confirmed on the RICS Red Book Global page. RICS states that a Red Book 2028 edition will follow the next IVS update.
International Valuation Standards, published 31 January 2024 and effective 31 January 2025: general standards IVS 100 to IVS 106 and asset standards IVS 200 to IVS 500, per the IVSC standards page.
European Valuation Standards 2025 (tenth edition, TEGoVA), in force from 1 January 2025.
USPAP 2024 edition (The Appraisal Foundation), effective 1 January 2024 with no fixed end date; check for a later edition.
Related templates: real-estate/rent-roll-arrears, real-estate/lease-abstract, real-estate/property-condition-assessment, real-estate/property-due-diligence-checklist, mba/mba-real-estate-finance-card, finance/credit-memo.

Standard and licence note

Structure aligned with RICS Valuation, Global Standards (effective 31 January 2025) and the International Valuation Standards (effective 31 January 2025), with references to TEGoVA European Valuation Standards 2025 and USPAP. These standards are copyrighted: this template names their standard numbers and titles only and is written in original wording; it does not reproduce definitions or requirements. Official text: RICS, purchase or licensed access: https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book/red-book-global; IVSC, registration or licensed access: https://www.ivsc.org/standards/; TEGoVA: https://tegova.org/european-valuation-standards-evs. The template is independent and not endorsed by any standard setter. Check the current editions and use a qualified valuer. Template licence: MIT.

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Immobilier & Services généraux