Valuation of Offices and Industrial

Properties
 Offices can range from a single room above a shop to
an office building within a factory complex to a city
centre office block.
 An occupier’s requirement for the location of the
office space and facilities will vary;
 according to the category for which the office is
ultimately used.

 Offices may be broadly classifies into a number of

different categories.
 Those designed primarily to provide office
accommodation and are generally a purpose designed
building(s).
 Those where the public may gain access such as banks
and building societies.
 Those that are ancillary to alternative user such as
offices in industrial complexes and;
 Offices above shops and other properties.
 Basis of Measurements
 All measurements in accordance with the
International Property Measurement Standards
(IPMS)- Net Internal Area (NIA)
 Building Specific Considerations
 External factors
 General Description
 Construction
 Age
 Type of Office
  Location
 Accessibility
 Transport Facilities

 Internal Factors
Entrance Quality - Sole/shared
Walls, floors, ceilings, windows, lighting, heating, air
conditioning
Toilets- whether communal to the building or
exclusive, quality finish and also whether sufficient.
Approach
 The rental approach is the most commonly used.
 The usual unit of comparison is the rent/m2.

 Only in very exceptional circumstances would a

different approach to the valuation be adopted.
 The actual rent payable in the area will reflect all the
advantages and disadvantages of the office location as
well as the quality of accommodation.
 Typical adjustments however can be made on the
basis of; rent-free periods
 Capital contributions to the fitting out
 Tenants’ improvements
 Non-standard lease terms.
 The valuation of offices has at times caused problems
for Valuers due to a change in market conditions.
 The valuation of Industrial Properties.

 These covers wide ranges of industrial properties, from

single unit to distribution warehouses.
 The value of these types of properties can be
influenced by a large number of different factors
associated with;
 the location,
 design and construction of the property
 as well as its conditions.
 It is imperative to note all these factors when
undertaking the inspection of the property.
 For instance, some industrial properties may
comprise a range of different buildings used for
different purposes such as;
 production, services, storage, offices etc.
 Each building and use contribute to the value of the
property in a different way.
 Whilst traditionally, warehouses were located near
ports, today emphasis is on location near motorways
or other main roads.
 Some have taken place away from the congestion as
they are not tied to the location of the raw materials
but based on their market.
 The Valuers analysis will include at least the
following issues.
 Location
 The availability of bus and rail connections for
workforce and visitors.
 Rail connect ion for freight- may be direct to the
property or near a road/rail interchange
 Visibility of the property

 Road connections with special emphasis on;

 access to the property by heavy articulated vehicles and
proximity to motorways and the main road network
 Workforce
 Private access roads
 Site details
 Size, boundaries
 Vehicular access, car and lorry parking facilities, facilities
for turning lorries
 Site coverage- often quoted as a percentage of site covered
by buildings
 The layout of the site with specific reference to how the
buildings work together to form an efficient unit.
 Landscaping
 Building Specific
 Construction
 Main structure whether single or multi storey
 Roof type and covering, walls construction and material
used.
 Windows types and sizes including positioning
 Natural light, floor loading capacity, loading bays; type,
size and number
 Condition of the property
 Age of the buildings
 Internal details such as ceilings, floor finish, heating
etc
 Other details such as mezzanine floors etc.
 Services
 Heating, lighting, sprinklers, standby power, waste
disposal, electrical supply, air conditioning system,
security systems, cranes and gantries.
 Typical like in offices but in most instances, each
building on site will be valued individually at a given
rate/m2 reflecting;
 its use, age, construction and all other factors that
affect its value.
 In addition, consideration will also have to be given
to the value for items such as;
 parking, lorry parks, storage land add to the value of the
property.
 One of the problems associated with the valuation of
industrial properties is that;
 the valuation of individual units/buildings as the sum
of all these values may not represents the value of the
property as a whole.

 Individual buildings may not be located in the best

position on site, space between buildings may be
cramped leading to poor vehicular circulation.
 Other considerations such as;
 Size and quantity allowance, obsolescence and other
sustainability factors.

 The Valuer as always need to stand back and look at

the figures.