ABSTRACT
An assessment of the market value of office property by the valuer is based on a detailed analysis of market sales evidence, including identifying the key value drivers, in order to establish those matters relevant to the market and thereby revealing how the market functions. The motivations around decision-making by vendors and purchasers in a particular market are subsumed in the outcomes of the key value drivers and ultimately the final purchase price. In most office property transactions, the decision-making by the occupiers and the lessees is one of the key value drivers, particularly in the determining the value of office property being transacted for investment purposes. Most of the investment grade office buildings in Australia at the larger end of the spectrum are generally located in the main commercial centres and tend to be in the top-quality grades, being owned by Real Estate Investment Trusts, wholesale funds, investment syndicates, high net-worth individuals or international investors.
