VALUATION OF…
Streetfront Shops
Individual street-level retail premises, valued on footfall, frontage, and lease covenant.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Streetfront shops are valued primarily on an income basis using the Income Capitalisation Method, applied to a market rental derived from comparable street-level retail lettings in the same shopping node or high street.
Under the Big Five framework, the Income Generating Unit is typically the single shop premises; contract rental is compared to market rental having regard to frontage width, depth and visibility, a vacancy allowance is applied with regard to the letting demand for that specific node, and the capitalisation rate reflects tenant covenant and the strength of pedestrian footfall in the precinct.
Frontage width and footfall are the dominant value drivers for streetfront retail. A Direct Comparison cross-check on a rate per square metre against sales of comparable street-level shops in the same or a similar node should be used to test the primary valuation.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Streetfront Shops — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.