Valuations

An independent third-party valuation gives you the objectivity, methodology transparency, and regulatory defensibility that internal estimates simply cannot provide. Organisations that rely on internal or informal valuations expose themselves to four categories of risk:

• Financial reporting exposure: GAAP and IFRS require fair value measurement for real estate assets held on the balance sheet. An internal estimate that cannot withstand external audit scrutiny can trigger restatements, write-downs, and regulatory review.

• Transaction mispricing: Without an independent valuation, sellers routinely underprice or overprice assets, accept inadequate consideration in M&A, or make acquisition decisions on unsupported assumptions. The information gap between counterparties in a commercial real estate transaction is significant.

• Lender and covenant compliance: Most commercial real estate financing agreements require periodic independent appraisals to confirm collateral values and monitor loan-to-value ratios. Non-compliance can trigger loan acceleration or covenant default.

• Governance and fiduciary liability: For REITs, pension funds, insurance companies, or any entity with a fiduciary duty to investors, a valuation that cannot be independently defended creates personal liability exposure for board members and fund managers.

JLL's Value and Risk Advisory practice provides independent valuations across all commercial real estate asset classes, with more than 2,500 specialists operating across 35 countries. Our valuers hold MAI, MRICS, and equivalent professional designations in their respective markets, adhering to international valuation standards in every engagement.

Real estate valuations directly underpin balance sheet accuracy, financial reporting compliance, and the integrity of disclosures required under IndAS, GAAP, IFRS, and applicable securities regulations.

Commercial real estate assets appear on corporate and fund balance sheets under multiple accounting frameworks, and each framework imposes specific valuation requirements:

• ASC 820 / IFRS 13 (Fair Value Measurement): Entities holding real estate assets at fair value must measure them using observable market inputs and defensible methodologies. JLL provides Level 2 and Level 3 fair value opinions that satisfy audit committee and external auditor requirements.

• Investment property (IAS 40): Entities electing the fair value model under IAS 40 must revalue investment properties at each reporting date, with changes recognised in profit or loss. JLL designs recurring valuation programmes specifically around IAS 40 compliance deadlines.

• ASC 360 (Impairment Testing): Long-lived real estate assets must be tested for impairment when indicators exist. JLL provides the undiscounted and discounted cash flow assessments that meet those requirements.

• Fund NAV reporting: Open-end and closed-end real estate funds require portfolio asset valuations at regular intervals. JLL manages large-scale, recurring NAV valuation programmes for institutional real estate fund managers globally.

JLL's Value and Risk Advisory team advises on more than $3.0 trillion in assets annually — a proprietary benchmark dataset that enables our valuers to calibrate market-rate assumptions using current transaction evidence rather than stale comparables.

Banks, debt funds, and insurance company lenders typically require independent appraisals at loan origination, updated valuations at refinancing, and periodic portfolio monitoring appraisals, and JLL delivers all three at scale across every commercial real estate asset class.

Lender-driven appraisal demand falls into two recurring use cases, each with distinct scope and timeline requirements:

• Refinancing and loan modification: Lenders require updated appraisals when refinancing or modifying existing debt, particularly when market conditions have shifted materially since origination. JLL delivers update reports and full new appraisals with turnaround times calibrated to typical loan closing timelines.

• Periodic portfolio monitoring appraisals: Banks, insurance companies, and CMBS special servicers conduct periodic reviews to confirm collateral values remain sufficient to support outstanding loan balances. JLL provides desktop reviews, restricted appraisal reports, and full reappraisals across large loan portfolios, with consistent methodology and centralised quality control across all geographies.

JLL's lender services practice operates with dedicated relationship teams for bank clients, insurance company lenders, and debt fund platforms, with deep experience across agency lending, life company, and bank balance sheet programmes. JLL delivers all three across every commercial asset class

Sustainability and climate risk are pricing variables in JLL's valuation methodology. JLL integrates them directly into commercial real estate valuations, quantifying the green premium, brown discount, and transition risk exposure that are increasingly moving asset values in every major market. JLL maintains strict independence protocols aligned with regulatory guidelines

JLL's research confirms that energy-efficient, low-carbon buildings are commanding measurable rent and value premiums, while assets at risk of energy non-compliance face accelerating obsolescence. JLL's sustainability-integrated valuation methodology operates across four dimensions:

• Green premium assessment: JLL assesses LEED, BREEAM, NABERS, and equivalent certification premiums using current transaction data, then layers forward-looking analysis of energy performance standards and mandatory disclosure requirements that will reshape pricing as regulatory deadlines approach.

• Brown discount quantification: Where assets fail to meet current or forthcoming energy performance standards, JLL's climate risk specialists model the brown discount at asset and portfolio level, quantifying higher capex requirements, tenant flight risk, and the narrowing investor universe.

• Physical climate risk modelling: JLL's Risk Advisory team provides physical climate risk modelling that identifies exposure to flooding, extreme heat, sea level rise, and wildfire, quantifying the insurance cost and value impact over a 10-to-30-year horizon.

• Decarbonisation cash flow modelling: For complex mandates, JLL constructs cash flow models that explicitly adjust for decarbonisation capex, evolving energy costs, and occupier demand shifts.

JLL's Valuation Advisory practice operates within an integrated capital markets platform sharing data, market intelligence, and client relationships in real time with our investment sales, debt advisory, investment banking, and research teams so clients receive coordinated advisory rather than siloed reports.

For capital partners and developers managing complex mandates, the practical benefit is that valuation informs and is informed by live market intelligence from adjacent practices:

• Investment sales alignment: Before a property goes to market, JLL's valuers share comparable transaction data and pricing guidance with our investment sales advisors, ensuring that the pricing range presented to buyers is anchored in the same market evidence used to establish value. This reduces re-trade risk.

• Debt advisory coordination: For development and acquisition mandates requiring both valuation and financing, JLL's team provides lender-form appraisals that satisfy the documentation requirements of JLL's Debt Advisory clients, eliminating the friction of coordinating two separate advisor relationships.

• Research integration: JLL's 550 global research professionals produce the sector outlooks, cap rate benchmarks, and supply-demand analyses that directly underpin JLL's valuation assumptions, giving clients access to the same intelligence base as our advisors rather than relying on publicly available data.

• Development feasibility: For developers evaluating land acquisition or repositioning decisions, JLL provides prospective market value opinions, as-completed valuations, and development feasibility analyses that integrate construction cost benchmarks, absorption assumptions, and current capital market pricing.

JLL's valuers hold the most widely recognised professional designations in their respective markets—MAI from the Appraisal Institute, MRICS from the Royal Institution of Chartered Surveyors, and equivalent local designations. JLL's compliance framework is designed to satisfy the requirements of the most demanding institutional, regulatory, and legal audiences in each market where we operate.

Professional standards for commercial real estate valuation vary by jurisdiction, and JLL maintains rigorous compliance across all markets:

• International: JLL's valuers hold MRICS or equivalent local designations, conducting valuations in accordance with International Valuation Standards and applicable local statutory requirements. JLL is a corporate member of the RICS and maintains regulatory compliance programmes across all 35 countries in which we operate.

• Quality control: JLL's centralised technical review programme audits completed valuations for methodology compliance, comparable selection quality, and report completeness before delivery, providing an independent quality assurance layer above individual appraiser self-certification.

JLL manages high-volume lender appraisal programmes through dedicated relationship teams, centralised workflow management, standardised methodology protocols, and a quality control infrastructure that maintains consistency and turn-time reliability across large order volumes and multiple geographies. The time and fees vary for our valuations, as follows:

• Single-asset appraisals: 1–2 weeks from engagement

• Portfolio or complex assignments: 4–8 weeks

• Expedited turnaround available for urgent needs

Fees are fixed for project engagements or program pricing for portfolios; no contingency or percentage-of-value fees.

For banks, CMBS platforms, and debt funds managing appraisal panels, operational requirements include individual report quality, programme-level consistency, predictable turnaround, and proactive communication across hundreds or thousands of annual assignments. JLL's model delivers four operational capabilities:

• Dedicated relationship management: Each lender client has a designated relationship manager who coordinates assignment intake, monitors turnaround against committed timelines, resolves scope questions before they cause delays, and escalates issues proactively, eliminating the communication gaps that create closing delays.

• Standardised methodology protocols: JLL develops client-specific engagement letter templates, scope of work standards, and report formats that reflect each lender's credit policy requirements, ensuring appraisals are consistent with credit committee expectations before submission.

• Centralised quality review: Every report produced under a lender programme engagement is reviewed by JLL's appraisal review team before delivery, checking for methodology compliance, comparables adequacy, and lender-specific format requirements.

• National and cross-market coverage: JLL's network of Certified General Appraisers covers international geographies, enabling lenders to place all assignments through a single relationship rather than managing multiple regional firms.

Yes. JLL's global valuation platform is specifically designed for simultaneous multi-geography portfolio execution, with local valuation specialists in 35 countries coordinated under unified methodology standards, a single client relationship, and consolidated reporting.

Multi-geography portfolio valuation programmes require four capabilities that JLL's platform provides:

• Local market expertise at global scale: Each asset receives a valuation conducted by JLL's local specialists — appraisers with current knowledge of that specific submarket, local regulatory requirements, and active market participant relationships — rather than being valued remotely using general databases.

• Unified methodology: JLL applies consistent valuation methodology and assumption frameworks across the global portfolio, ensuring that comparisons between assets in different markets are methodologically coherent, a critical requirement for financial reporting and portfolio analytics.

• Centralised coordination and reporting: A single senior engagement manager coordinates all assignments across geographies, maintains the delivery schedule, and produces consolidated portfolio reporting, giving corporate clients a single point of accountability rather than managing separate regional relationships.

• Currency and cross-border reporting: For group financial reporting, JLL provides valuation reports in local currency with agreed exchange rate conventions and can deliver consolidated portfolio summaries in any reporting currency.

JLL closed valuation assignments across 35 countries in the most recent reporting year and maintains active local operations in over 80 countries. In India, the valuation platform covers multi-gepgraphy portfolios in over 200 cities across the country.