The Profits Method
This method concerns certain properties with specific characteristics or properties such as : hotels, cinemas, hospitals, clinics.
It is also frequently used for commercial and leisure real estate.
These methods are in fact derivatives of methods by direct comparison or by income.
They are based on a rental value based on a percentage of existing or potential sales or gross profit, of the activity carried out in the premises.
The notion of rent-to-revenue ratios is based on averages. The assessor must be able to analyse the financial possibilities of the future tenant.