Valuation & Advisory: Real Estate Valuation for Commercial Properties

Independent Real Estate Valuation as the Foundation for Sustainable Investment Decisions

Interview with the Head of Valuation & Advisory

Why is independent real estate valuation so important in the current market environment?

In an increasingly complex and selective real estate market, independent and well-founded valuation is indispensable. Investors, owners, and financing partners today require valuations that are not only methodologically sound, but also transparent, comprehensible, and clearly aligned with the market. Especially under volatile market conditions, professional valuation provides security and forms the basis for sustainable investment and financing decisions.

What role do qualified and certified valuers play in this context?

It has always been very important to us that our team continuously develops and remains up to date professionally. Ongoing training is an integral part of our daily work. Personally, I am also involved in lectures and presentations for aspiring real estate valuers to share knowledge and raise early awareness of high quality standards. After all, qualified and certified valuers form the foundation of reliable property valuations. Certifications such as public appointment, RICS, ISO/IEC 17024, or HypZert stand for high professional standards and independence. At Cushman & Wakefield, valuations are carried out by accordingly certified experts whose work is recognized nationally and internationally—an essential factor, particularly for institutional investors and banks.

How have the requirements for real estate valuation changed in recent years?

The expectations placed on real estate valuation have evolved significantly. Today, it is no longer sufficient to determine a market value in isolation. Different asset classes require usage-specific analysis, and factors such as ESG criteria, sustainability, energy efficiency, and regulatory requirements have become key value drivers—as well as potential risk factors. Modern valuation must integrate these aspects alongside market cycles, financing costs, and long-term usage perspectives.

What are the key factors currently influencing real estate values in Germany?

Real estate values are currently driven largely by location and market quality, lease agreements, lease terms, and tenant creditworthiness. In addition, macroeconomic factors such as interest rate levels, financing costs, and equity requirements play a crucial role. A professional valuation brings together these market, property-specific, and financing-related factors into a consistent valuation model, enabling a realistic assessment of value, risk, and potential.

Which real estate asset classes are currently the main focus of valuation requests?

The current focus is clearly on asset classes with stable and resilient income profiles. These include logistics and residential properties, as well as healthcare assets, which continue to gain importance. In the office sector, valuations are primarily concentrated on high-quality, ESG-compliant assets in prime locations. Retail properties are assessed more selectively, particularly where they feature defensive usage concepts.

What role do data, digital tools, and artificial intelligence play in real estate valuation?

Data, digital tools, and AI now make a significant contribution to real estate valuation, for example through more efficient analysis, scenario simulations, and market comparisons. They enhance transparency and comparability and support the systematic evaluation of cash flows, market data, and risks. At the same time, they do not replace the professional judgment of experienced valuers. The interpretation of asset-specific characteristics and qualitative factors remains a core human expertise. Going forward, valuation will increasingly evolve as a hybrid approach combining technology and expert judgment.

How will valuation practices in Germany evolve in the future?

Real estate valuation will become even more data-intensive, risk-oriented, and strategic. ESG aspects, scenario analyses, and technological support will continue to gain importance. At the same time, professional experience will remain essential for properly interpreting market data and assessing complex interrelationships. Valuation is increasingly developing from a purely technical determination of value into an integral component of holistic investment and capital markets strategies—providing investors with guidance and robust decision-making foundations, even in volatile market phases.

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