ABSTRACT
The genesis of over-rented property investments in the early 1990s was the catalyst for the re-examination of many of the traditional valuation methods used for investment property. Over-rented investments reached their peak in the mid-1990s and have declined in importance in terms of the numbers seen by commercial valuers. Notwithstanding this, it is important to look at over-rented investments for two main reasons. First, the UK commercial market structure, and particularly the lease structures, will allow overrented investments to recur. Second, over-rented investments expose many of the fundamental weaknesses in the traditional approaches.
