Copyright © 2013 by Donald Evan Gilbert, Managing Director, Australian Lease & Property Consultants Pty Ltd and 3D Economics Pty Ltd
The first part of this three-part series discusses the pitfalls, limitations and consequences of valuing retail leases using the Comparison Method (‘$/M2’). Part II presents examples using actual, real-life data of such $/M2 valuations and how they affect the stakeholders involved and result in a significant misallocation of capital that is a ticking time bomb for the sector as a whole.
