When was the valuation date?
Date of inspection, 7th January 2022
Why did you adopt the RICS Valuation - Global Standards 2022, if this came into force in 2/02/2022?
Early adoption was allowed, so I decided to comply with the new Red Book
What borough does the subject sits in?
Castle Point District
What were the loading doors sizes?
3.5 W x 4 H
Why do you think the subject is highly individual property?
Because I established that users/companies in that area are mainly SMEs manufacturers who require floor space between 5,000 to 15,000 sq.ft.
Therefore demand for larger space is lower
Additionally, a large size of amenity land which the subject provides may perhaps be seen as an unnecessary surplus which does not add significant value to the property.
How did you determine whether the lease was inside or outside the Act?
I read the lease which stated that it was Contracted out of 1954 Act
Why did you choose to select the units in Carnival Park and Pembroke Business Centre as you key comps?
Because I assessed the properties based
different parameters, such as location, condition, size and other facilities and established that on balance the two units could offer a similar level of rent
Why didn’t you give more weight to Thamesview?
Mainly because this comparable had a much smaller floor space and therefore based on grounds of quantum, would be able to achieve achieve a significant higher rent than the subject
How much did the vacant site sell for?
£166,000 (£77,000 per acre)
Why didn’t you adopt the Investment method of Valuation instead of the Capital Value rate?
- I felt I had quality vacant possession sales evidence for both uses which I was quite familiar with and comfortable in adjusting to reflect the differences with the subject
- The client was very keen in testing the value in alternative way if possible and I also wanted do it a way I could avoid making an assumption for void periods.
- For the purposes the actual report, I did value the property using an investment method and similar void assumption which actually reflected a lower price
In you MVVP, why did you choose 1-3 Moss road and Unit 4, Airbone Close and not others that are arguably nearer?
- I was aware that these weren’t perfect matches to my subject, however, I gave greater weight to these comparables as there some key similarities with the subject, I had full information of the physical and transactional details which therefore give me greater confidence in implementing various adjustments accurately to reflect the differences between properties.
Why do you think Moss road which is in a arguably better location had a lower rate to the one you’ve adopted?
- With Moss Road there were many specification elements which matched with the subject and made it comparable, such as size, site coverage, similar industrial estate context, however, Moss has significant lower eaves height and consist of an older property. These two latter elements had great weight in determining an overall upward adjustment.
Why did Airbone Close, which is older and worse property, had a higher figure than your subject?
- Yes, Airbone was a poorer building and lacked of private yard but the similar location and smaller size counter balanced the adjustments and generate a similar price.
In your MVVP, why didn’t you apply a similar rate to Thamesview given that it was in a such a close proximity to your subject?
- Firstly Thameseview comaprable was under offer which meant that it would sit lower down the list of my hierarchy of evidence,
- Secondly, I would have applied a material discount on it based on ground of quantum
When comparing the subject to comparables, how did you account for the trade counter area?
Any unit that did not have a counter area I would apply a discount on it, but the downward adjustment % would be different and assessed on a case-by-case basis based on the overall range of factors.
Why do you adjust each comparable? what are you trying to achieve?
- I make adjustments on each comparable based on a range of factors. If the property has for example better qualities and therefore command a higher rate, than the subject, I would adjust the rate down wards viceversa if the I believe the property had poorer qualities.
The aim is achieve an accurate adjusted rate representing what the comparable would have sold if it had the same characteristics to my subject.
All your rental comps are very different to your subject, how did you arrive at your opinion of rent?
- I am aware that the comaprables collated are varied and generally smaller in size but each of the properties listed had at least 2-3 key factors comparable to the subject and also I considered these the most reliable piece as I had obtained full information on them.
- Essentially, in this occasion ranked all the comparable using the hierarchy of evidence obtained an adjusted rate and then did a sort of weighted average
Why did you choose Carnival Park as your best rental comp?
- Carnival park was strongest comparable because there were some key features which made it very similar to the subject, such as yard, type of construction, and trade counter area.
- I know many agents who operate in that area, so the information regarding the property came from a primary source which enable me to adjust the rate with more confidence.
Why did you take so long to deliver the valuation, when it normally takes 2-3 weeks?
Yes, I am aware of the unsual timeline, but this was a sort of calculated delayed as I made my client aware before agreeing the ToE that I would only be able, due to a large workload, to carry out the valuation in January and report within 3 weeks. My client was happy with the proposed arrangement and confirmed the ToE.
What were the business rates?
£95,000
What class use is the unit?
- The permitted use under the lease is B1, B2 and B8.
What class use is the unit? did the unit have permission for office and counter area?
- The permitted use under the lease is B1, B2 and B8 so covering for offices as well
Does the lease allow any assignment?
he tenant can assign the whole of the demised premises but not part only and may sub-let the whole or permitted parts subject to landlord consent.
Give me an overview of rents and cap.value rates across Essex for industrial?
Location /£psf Prime Rents Secondary Rents Prime Owner Occupier Capital Values
BASILDON £13.00 £11.50 £250
BRAINTREE £12.00 £10.50 £230
CHELMSFORD£14.00 £13.00 £275
THURROCK £16.00 £14.50 £340
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Money Laundering and Bribery53
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Data Management82
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Client Care22
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Case Study31
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Valuation submission127
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Ethics submission139
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Interview q&as375
