University of Technology Sydney

17133 Investment Property Valuation

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp
Result type: Grade and marks

There are course requisites for this subject. See access conditions.


This subject is designed to foster a deep understanding of theory and practice applied by industry to the analysis of investment and owner-occupied property, within non-residential property market sectors. Students develop a strong theoretical and practical understanding of the established industry-based analysis, informing key decisions relating to property investment value and performance measurement. Relevant primary property market sectors include the commercial, retail and industrial sectors.

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Content (topics)

  • Capitalisation valuation methodology
  • Yield analysis (Initial, Equivalent & Reversionary)
  • Lessee & Lessor Interests
  • Capitalisation Adjustments
  • Face & Effective Rental calculations
  • Dual Rate valuation methodology
  • Legal framework for non residential leases
  • Commercial Rents & Rent Review mechanisms
  • Critical Lease Provisions impacting value in investment grade property
  • Constructing Tenancy & Outgoing Schedules
  • Direct Comparison methodology applied to investment property
  • Discounted Cash Flow methodology for investment property
  • Investment Property Performance Measurement & Reporting.

Minimum requirements

Students must achieve at least 50% of the subject’s total mark.