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| Valuation of Special Purpose Properties |
Examples of special purpose properties are Service Stations, Shopping Centres, Hotels, Motels, Health
Care Establishments, Large Volume Pubs, Cinemas, Self Storage Facilities, and Churches, etc. Then
there are the larger industrial type of complexes such a Freezing Works, Heavy Industrial type of buildings,
etc.
What differentiate these types of premises are the limitations on alternative uses. We are all familiar with
derelict main highway Service Stations which are no longer supported by the various oil companies.
Where are the alternative tenants?
Valuation Approaches
When carrying out a normal Commercial or Industrial valuation it is common to draw sale or rental
evidence from similar type of properties in close geographical proximity. In other words, if you were looking
at premises in Wellington it would be unthinkable to use a sale from Palmerston North and visa versa.
However, with Special Purpose properties it is common to draw on evidence from a much wider
geographical spread.
Depreciated Replacement Cost
Depending on whether there is any available evidence or the purpose of the valuation, the replacement
cost approach may be a valid approach when assessing these types of premises.
Care Establishments, Large Volume Pubs, Cinemas, Self Storage Facilities, and Churches, etc. Then
there are the larger industrial type of complexes such a Freezing Works, Heavy Industrial type of buildings,
etc.
What differentiate these types of premises are the limitations on alternative uses. We are all familiar with
derelict main highway Service Stations which are no longer supported by the various oil companies.
Where are the alternative tenants?
Valuation Approaches
When carrying out a normal Commercial or Industrial valuation it is common to draw sale or rental
evidence from similar type of properties in close geographical proximity. In other words, if you were looking
at premises in Wellington it would be unthinkable to use a sale from Palmerston North and visa versa.
However, with Special Purpose properties it is common to draw on evidence from a much wider
geographical spread.
Depreciated Replacement Cost
Depending on whether there is any available evidence or the purpose of the valuation, the replacement
cost approach may be a valid approach when assessing these types of premises.
Innovation + Experience |
| PO BOX 9018, Wellington 6141 | phone: (04) 240-0124 | fax: (04) 232-4414 | email: valuer@ vcnz.co.nz Innovation + Experience |