Global real estate services firm, JLL has joined the IVSC in our collective effort to advance valuation through internationally accepted standards. We spoke to JLL's Global Head of Valuation Advisory, Mark Wynne-Smith, to find out more about why they believe globally consistent standards are important to clients in our changing world.
Why do international valuation standards matter?
We advise national, regional and global clients and consistency around how valuations are prepared and which methodologies are applied is extremely important, not only for our business but also the industry.
We are in a rapidly changing environment where impact on value goes beyond demand for Real Estate – for example ESG considerations, industry resets such as the relationship between retail and logistics, debt instruments.
It is important to have consistent standards across tangibles, intangibles and business valuation as these are increasingly inter-linked. There needs to be greater cross-over and interaction between the tangible and intangible asset valuation communities.
It will be increasingly important for valuers of tangible assets as investments and investment structures become more complex and the leasing and income structures adapt making valuation of bricks and mortar more inter-connected to the running of a business within the building.
As data becomes increasingly valuable - often referred to as the new oil - it is important that we work with the IVSC to develop robust, controlled data policies to ensure, not only quality of advice on a global basis but also to protect clients’ confidential information.
How does JLL use the International Valuation Standards today?
Across the globe JLL valuers are qualified through their dominant local professional bodies which are in the main IVS compliant.
Layered over this many of our valuers are RICS qualified, not only in Europe, where membership outside the UK grew rapidly in the last 2 decades but also Asia, the Americas and Australasia where other valuation bodies are dominant but RICS membership is increasing. Global businesses such as JLL need global standards. The IVS are the only recognisable global standards.
How do clients benefit from consistent standards?
The largest investors are getting larger, accounting for a bigger share of AUM and with more global reach. It is vital that the valuations of their assets follow the same methodology, the same approach, the same set of standards. IVS can offer support and a rigorous set of standards to help guide valuers in increasingly dynamic and complex investment arenas. Clients underwrite assets in a singular way and they are growing more and more frustrated with local quirks which make performance comparisons complex to deliver.
Why is JLL joining the IVSC now?
JLL’s Valuation Advisory platform is now a global service line. We are joining up and aligning our teams across the globe on best practice, data, methodology, products, services and other advisory areas.
IVS is a global standard for valuation. It makes sense that JLL and IVSC are both aligned with our global reach and visions. IVS standards are extremely relevant as valuers need to be consistent in their approach and advice and it is important the end user understands how the valuation is derived and trusts in a consistent approach.
JLL's Mark Wynne-Smith