Rethinking How We Value Office Assets
Yesterday, we gathered in London Bridge for an insightful morning discussing the evolving methodologies of valuing office buildings that include flex space.
Hosted by Brave Corporation and Workplace Creations, and featuring an eye-opening presentation by Sam Gamble, Co-founder of ReturnSuite, the event challenged traditional valuation models and explored how the industry must adapt to a data-driven, operational approach.
Sam walked us through why legacy valuation methods—such as standard capitalization—fail to reflect the true value of office assets with flex components. Traditional models often ignore the revenue potential from flexible income streams, including short-term leases, service offerings, and operational efficiencies. As a result, these assets are frequently undervalued—even when they generate stronger NOI than their conventionally leased counterparts.
So, what’s the solution?
Expected value methods. Unlike rigid models that rely on fixed assumptions, expected value approaches leverage data variability and probabilistic modeling to account for different revenue scenarios. This method, widely used in other industries, provides a more dynamic and realistic assessment of an asset’s financial performance.
Key takeaways from the event:
Traditional valuation models are outdated – They often ignore flexible income and fail to capture the operational nature of modern office assets.
Expected value methods are the future – Unlike single-point estimates, these models consider a range of cash flow scenarios, providing a more accurate reflection of value.
Real estate is becoming more operational – Investors and landlords must analyze cash flow forecasting and operational performance rather than relying solely on lease terms.
Collaboration and standardization are critical – Without a shared framework for defining and categorizing flex space, it’s difficult for lenders and investors to assess risk and opportunity consistently.
Sam’s real-world experience, including increasing NOI by 40%+ through flex strategies, led him to do in-depth research on the valuation tools used in other industries—the key finding being that the right tools already exist.
The next step is industry-wide adoption.
A huge thank you to Sam Gamble for his thought-provoking presentation, to Dan Carey and the Workplace Creations team for hosting, and to everyone who attended and contributed to an energizing discussion.