• “And thank you for emailing your (very substantial) report to me. Your analysis and comments are excellent, forthright and challenging, and more insightful than my own advisors!” - Pharmacist, Major Brand
    “I have known Don for many years and worked with him in both South Africa and Australia. Don is a dedicated retail property professional and continues to strive to know more about his industry and how to make his clients more » - Dr. Brent Stephens
    “Thanks for your efforts!” - Dominic, Owner of Multiple ACT Delicatessens
    “Don excels at what he does. He is the most veracious provider of diligent retail property valuation work I have come across in my 27 years as a Real Estate Agent. I would recommend Don whenever a thorough examination of more » - Jonathan Blocksidge, Director REIQ
    “Don is one of the most qualified and experienced retail lease valuers in Australia and has qualified as a retail rent specialist arbitrator by both IAMA and RICS. Unlike many traditional valuers, he regularly seeks newer and better valuation methodologies more » - Matt Myers, Senior Univ. Lecturer
    “I’ve been on most sides of real estate ownership and management. As a developer, owner, professional manager, and tenant. Don has a refreshingly rational, economically and mathematically literate approach to retail property valuation which avoids many of the rule-of-thumb pitfalls more » - Graham Young, Publisher
    “And yes, you definitely gave me some valuable tips! You have some very interesting stories. I hope that one day I will have some exciting experiences to talk about too!” - Solicitor
    “I have been provided with a copy of a report made by Mr D E Gilbert of Queensland Lease Consultants [former name of ALPC] who is a recognised expert in the relation of rent review determinations, in particular retail premises.” - Leading Australian QC
    “Thank you very much for all the time, effort, and consideration you have put into our submission. We are extremely happy with your service… We feel extremely fortunate to have discovered you – it is very rare to find an more » - John, Grocery Retailer
    “I just want to tell you how much I enjoyed your presentation yesterday… I’m the guy who thanked you for “telling it as it is” afterwards. I agree with your belief that most rents are over priced and impact on more » - Business Valuer
    “Thank you Don for all your help and for all the contributions that you make to the retail property industry.” - NSW Specialist Retail Valuer
    “Don is a clear-sighted, down-to-earth business professional with a sharp sense of where economic value comes from, and how to deliver; and how to measure it. Engaging with him on retail property valuation takes me instantly from theory to the more » - Govindan (“Govind”) Nair
    “Don has showed the highest level of integrity and trustworthiness in my dealings with him. His tenacity and attitude to succeed are legend. He makes sure he delivers.” - Mathew Tait, Pharmacist
    “As a retailer with over 15 years Brisbane CBD experience, we engaged Don for independent expert advice to assist us in proving damages to the landlord who was a major industry superannuation fund. I am proud to confirm that Don’s more » - Ermanno Nobilio, Specialty Retailer
    “Don has a high level of experience as a specialist retail valuer, arbitrator/mediator and on tenancy determination/submission matters.” - John Kendall, Property Advisor
    “Don has a thorough understanding of the concept of value. From both sides of the equation of owner and tenant he strives to achieve equitable playing fields where fairness also provides win/win outcomes. Don is big picture orientated and has more » - Colin Freeman, Director
    “I love reading your articles, always make me laugh. We have decided to quit… retail just isn’t fun anymore and our landlord is being a typical landlord, demanding full refits, jacking up rents, constantly criticizing etc., etc., and I’m over more » - John, Showcase Jewellers
    “Don. You should write the Valuer’s manual on retail property valuation – the detail you go into is impressive.” - Leading NSW Specialist Retail Valuer
    “…You were very thorough. It is always good when the facts are provided in detail leaving no questions to be asked.” - Large Retail Landlord
    “Hi Donald, thank you for confirming what I already thought about Shopping Centres and retail Leases/Values.” - Business Valuer
  • Submission to determining valuer


    INSTRUCTION: Prepare submission to determining valuer for Tenant

    Excellent example of NSW and Administrative Decisions Tribunal (‘ADT’) appointment of expert Specialist Retail Valuer working to settle dispute.

    In the process, the operation of the market between willing Landlords and Tenants
    starts working better

    If parties pay current market rent, supply better matches demand

    It has to be a more “environmentally” friendly than developing 10s of 1,000 of M2, dumping it on to the market, “plugging” it full of businesses who invest direct and indirect capital (time, effort, staff, branding, etc), when it was not viable in the first place


    Tenant paying $220,000 for supermarket in dysfunctional centre. Landlord sought $245,000 i.e. $240 to $260 /M2

    Submitted “untested” evidence on $/M2 basis for 299 M2, 1500 M2 & 1000 M2 stores. i.e.
    “pick a number”

    Rental range $280.00 to $465.00 /M2; no link back to subject. Equivalent rents would equate to 7.5% to 12.4% of turnover

    During process 23 determining valuers names submitted by ADT. After asking:

     Do they have experience in determining supermarket rents?
     Did valuer understand KPIs of supermarket operation?
      Was the valuer independent and/or did they have conflicts of interest? Landlord said they would accept any of 23 names if nominated.

    All but three valuers including valuers who did original feasibility studies for centre development were prepared to be nominated. One firm subsequently withdrew, for sake of firm who did original feasibility studies, Tenant withdrew their nomination. Landlord then opted to reject the last firm

    ADT appointed valuer from Sydney

    How it was settled

    Tenant director forced to “protect” interest in valuable 10+5+5+5+5 year lease. Country area freight costs are prohibitive.

    Forensic analysis of Financial Statements KPIs suggested operation of business to reasonable standards. Operator had track record of operating other similar businesses to reasonable standards.

    Dysfunctional centre was trading at 1/3 of level of other supermarket based centres.

    Necessary to:

     Benchmark performance of centre and business
      Estimating parameters of “reasonable” vs “unreasonable” rent under S 19 of the NSW Act
      Linking recent leasing evidence of other similar “permitted” uses to business in question
      Making adjustments (up or down) for same
      Including or eliminating evidence and why
      Suggesting to the determining valuer what might be the “reasonable” rent and why
      Considering future events over 5-year lease term that might prevent on from entering a lease eg. opening of new Woolworths shopping centre

    Valuer determined reasonable rent at $140,000 per annum.

    This is not a “win” for either party. This is a win for:

      The ADT of NSW
      The process of independent expert determination
    working as it ought to with no/limited interference in market other than “process”
      The NSW legislation (who protect their valuers) working

    The GEM method works for both high and low performing sites and centres. It is unique methodology. It uses current established valuation principles and practices. Better. There is nothing like it world-wide

    This benefits all stakeholders including: superannuants, landlords, tenants, the franchise industry, financiers, investors, potential investors, etc. It assists the market to operate as a market should, with less Government interference

    The GEM method will also “add value” to leases & satisfy key criteria under AASB 138 for Landlord and Tenant leases