Detailed explanation
ERV is used in DCF modelling for lease-over-lease reversions. When an in-place lease expires, the rent is assumed to reset to ERV. ERV must be supported by at least 3-5 recent lease comparables in the same submarket. Moroccan 2026 ERV benchmarks (offices): 200-230 MAD/sqm/month Hay Riad Rabat, 280-380 MAD/sqm/month CFC Casablanca, 200-280 MAD/sqm/month Anfa-Place, 180-250 MAD/sqm/month Gueliz Marrakech.
Moroccan example
A Hay Riad office's current lease at 205 MAD/sqm expires in year 4 of the DCF. ERV is assessed at 225 MAD/sqm (indexed to 247 by year 4). Reversion cash flow jumps accordingly.
Related terms
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