TH2011

Site Valuation Checklists

Site valuation checklists vary by industry, function, and company. There are potentially hundreds of factors
that could be compiled into a master checklist that would cover all these scenarios. But, in general, location
checklists can be summarized into the following four (4) categories and will typically include some variation or
subset of the following factors:
Business and Operating Conditions
o Access (customers, suppliers, connectivity)
o Workforce (availability, capability, scalability, sustainability, livability)
o Utility infrastructure (power, fuel, water/sewer, telecom)
o Transportation infrastructure (roads, air, rail, port)
o Regulatory/permitting environment
o Business/support services and amenities

Geographically Variable Costs

o Workforce (wages/salaries, benefits)
o Taxes (income, ad valorem, sales, customs/duties, fees)
o Real estate (land/sites, buildings, lease)
o Utilities
o Logistics
o Incentives (variable cost offsets)
o Inflation

Real Estate/Site
o Availability
o Fit
o Expandability
o Flexibility
o Access
o Supporting infrastructure
o Terms
o Timing

Risks
o Natural disaster
o Political
o Social/safety
o Economic and currency
o Regulatory
o Timing

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Checklist Sample #1

A site appraisal or valuation could include the following. Provide necessary details, as applicable.
o Who owns the site? In the case of a Local Authority, which Department does it come under? Are
there any contracts or agreements on it?
o Does the site provide easy access – vehicular, servicing, pedestrian, disabled, emergency services?
o Is there adequate car parking provision, including potential overspill?
o What traffic impact will the project have, and how will people journey to and from it?
o What is the condition of the building? (Has a surveyor looked at the roof, structure, plant, etc.?) How
old are the boilers? Does the roof leak? Do the toilets overflow?
o Does the site or building have the right amount of net area (pitches, floor space, etc.) for the
activities required? Are the ceilings high enough?
o Does the site allow future flexibility, adaptation, extension, etc.? Will you be able to add a sprung
floor or bars to the walls, for example?
o Does the site have any Planning Policy issues that may prevent or delay the project? The process is
likely to be much easier if buildings or pieces of land are already being used for sport (for planning
use designation, sports assets, including swimming pools, gymnasiums, and other indoor and
outdoor sports and leisure uses).
o If the planning designation is not appropriate for sport, how easy will it be to get a Change of Use?
o Is the site within a Flood Risk area? (with both synthetic and natural track and field surfaces,
particular attention should be given to drainage and the ability to withstand significant rainfall
events and remain free of surface water)
o What are the implications of any development on adjacent sites or properties, and vice versa?
o Is the existing building listed for heritage or in a conservation area or of archaeological value?
o Are there any protected wildlife species?
o What is the quality of the existing landscape, and are there any Tree Preservation Orders?
o Are there any invasive plant species (e.g., Japanese Knotweed) that require expensive remediation?
o Is the site likely to have any contamination, subsidence, or contain asbestos?
o Does the site have any legal issues that may prevent or restrict the proposed development, e.g.,
restrictive covenants, Rights of Access, Rights of Light issues with adjacent properties, or potential
Party Wall issues?
o Are there any major services and utilities that cross the site?

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Checklist Sample #2
Site Selection Criteria
(1) Location

o Is the site accessible to target chosen demographics?

o Is the site accessible by public transportation and convenient for employees, suppliers, and potential
customers?
o Are nearby traffic levels acceptable?
o Is the site visible to passersby on foot or in vehicles?
o Are adjacent businesses a threat?
o Is there a history of crime or vandalism in the area?
o Is the area suitable for evening events (should the facility decide to operate until the evening)?

(2) Site/Land
o Is there access to utilities (e.g., electricity, sewer, water, gas, and phone)?
o Will the site require heavy maintenance (e.g., topography, drainage, retaining walls, or geotechnical
issues)?
o Is the proposed use for the project permitted by zoning? (For example, can you build the type of
project you want on the site?)
o Is there adequate space for parking?
o Are the soil conditions conducive to the project’s structural needs?

(3) Building
o Is the size adequate, and can it accommodate future growth (also based on space programming)?
o Is it structurally sound?
o What are the condition of the roof, exterior walls, and windows?
o What is the condition of all major systems (e.g., plumbing, electrical, and heating/ventilation)?
o Is there proper drainage in the basement or ground floor?
o Can the seller or broker provide recent utility bills from all seasons?
o Will projected energy costs be reasonable?
o Has the building been checked for asbestos, lead paint, or other hazardous materials?
o Are there appropriate fire exits?
o Is the building compliant with the IRR of Republic Act No. 9442 (Magna Carta for Persons with
Disability)?
o Is it a sustainably designed or green building? Is it *LEED-certified?
o Can space be easily reconfigured for administrative space or other future purposes?
o What is the condition of adjacent and nearby properties?
*LEED – stands for Leadership in Energy and Environmental Design. It is a building certification program used by commercial
establishments and office buildings.

(4) Costs and Renovations

o Is a recent appraisal available?
o Is the purchase price (or lease rate) reasonable and comparable to similar sites of similar age
and quality?
o Are the preliminary costs for improvements reasonable? Has your architect or project manager
confirmed the costs?
o What are the estimated maintenance costs?

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(5) Legal and Timing Issues

o Is the property or site vacant and available immediately?
o Is the seller motivated to sell within your timeframe?
o Is sufficient financing available to complete the transaction within the required timeframe?
o Are there zoning restrictions? Will there be a need for zoning variances or lengthy hearings?
Required setbacks? Legal easements or rights-of-way across the property? Prior title issues?
o Are you permitted to display signage on the site?
o Will building permits be available within the required timeframe?
o Are there any political issues that would block approval of the site? Are the neighbors likely to
be supportive?

References:
Charter School Facility Financing (n.d.) Determine criteria for site selection. Retrieved 08 February 2021 from
https://www.lisc.org/charter-schools/understanding-your-needs/site-selection/determine-criteria-site-selection/
Hertsmere Borough Council (2006). Planning and design guide. Retrieved 08 February 2021 from
https://www.hertsmere.gov.uk/Documents/09-Planning--Building-Control/Planning-Policy/Planning-
Publications/Design-Guide-Nov-06-Part-C.pdf
Keller International Publishing Corp. (2021). The site selection checklist: Prepare your approach. In SupplyChainBrain.
Retrieved 08 February 2021 from https://www.supplychainbrain.com/articles/4499-the-site-selection-checklist-
prepare-your-approach
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