Inspection Subs Flashcards
Why are inspections vital in providing clients a high level of service?
So you can understand all aspects of the property including the location, situation, external factors, internal factors.
What would you look for when considering the immediate area of the subject property?
- Location
- Local facilities
- How close to public transport
- Comparable evidence / local market conditions / agents boards
What would you consider for an external inspection?
- Construction
- Repair and Condition
- Parking
- Defects
- Site boundaries
What would you consider for an internal inspection
- Layout and flexibility
- Repair and maintenance
- Defects
- Services (age and condition)
- Statutory compliance (asbestos, equality Act)
- Compliance with lease obligations
You mentioned you advised the client that you could negotiate a rental reduction, what from the inspection made you think this?
(Bedford)
The main factor from inspection:
- Very high vacancy rate
- M&S had just left
Could you give me some detail on what the retail unit was like in Bedford ?
- In a relatively good retail pitch on the high street
- Ground floor and first floor unit
- 800 sq ft ZONE A
- Glazed frontage
- Brick construction beneath a pitched roof
Could you give me some detail on what the retail unit was like in Bedford ?
- In a relatively good retail pitch on the high street
- Ground floor and first floor unit
- 800 sq ft ZONE A
- First floor A/40
- Glazed frontage
- Brick construction beneath a pitched roof
What different things do you look out for when inspecting different asset types?
- Location - important for all but more focus on retail pitch for retail
- Condition - more important for offices and industrial as retail is left in core
- Industrial - loading bays, space for lorries etc.
What are the other influences that can affect value?
- location
- construction
- defects
- condition
- layout
- contamination
lease terms:
- tenure
- lease length
- restrictive user clauses
How can layout affect value?
If the layout obstructs it from being competitive in the market it would impact on the MR which would decrease valuation.
eg. Cellular office v open plan
You mentioned you conduct risk assessments prior to visiting sites, what do you do?
- Identify the HAZARDS
- WHO may be harmed
- RISK of that harm (and PRECAUTIONS)
- RECORD and IMPLEMENT
- REVIEW ASSESSMENT
- MINIMISE THAT RISK
When have you used a risk assessment
Development Site in Bow - the site was under demolition
HAZARDS - being hit by machinery, building materials falling on my head
WHO - my supervisor and I
RISK - it was not that likely if we remained vigilant and wore PPE
MINIMISED THE RISK - by wearing PPE
WHILST ON SITE I REMAINED VIGILENT.
When have you used a risk assessment?
Development Site in Bow - the site was under demolition
HAZARDS - being hit by machinery, building materials falling on my head
WHO - my supervisor and I
RISK - it was not that likely if we remained vigilant and wore PPE
MINIMISED THE RISK - by wearing PPE
WHILST ON SITE I REMAINED VIGILENT.
What is the RICS Guidance on inspecting during COVID-19?
x
What is your company’s guidance on inspecting during COVID-19?
xx
How do you identify defects
xx
What are typical defects in a period building?
- wet rot
- dry rot
- death watch beetle
- damp
- water ingress
- structural movement
- tile slippage
What are typical defects in a modern office?
- damp
- water damage (burst aircon pipes)
- cavity wall tie failure
- efflorescence
What are typical defects of an industrial building?
- Roof leaks
- Damaged Cladding
- Cut edge corrosion
- Blocked guttering
- Water damage (from blocked gutters / pipes bursting)
What are the 3 most common causes of defects?
- WATER
- MOVEMENT
- DEFECTIVE MATERIALS
Did you identify any defects in any buildings?
When I conducted my resi portfolio for vals I came across some damp
What do you do when you identify defects?
- Take photo
- Establish cause
- Notify client
- Recommend Specialist Advice
How do you check for Contamination whilst on inspection?
- Prior to site:
- planning history, previous use of site. - Inspection
- look out for signs of contamination such as oil spills, chemicals, oil drums, staining etc
If you are concerned about contamination what must you do?
- Get a specialist report and not provide advice until this is done.
- Caveat your advice
- Allow for remediation costs in report
Is there any Guidance on Contamination?
RICS GN Contamination, the Environment and Sustainability 2010
- Polluter pays for the remediation
3 types of investigation:
- review of site history
- investigation eg. soil samples
- remediation report
You mentioned your office in Embankment would fail to compete with modern open plan office and you noted the potential impact of this on your valuation. Could you expand?
Open plan space was around for newly refurbished £70-£80 for open plan space.
Cellular office space is not popular anymore - comparable evidence - £35
Impacted my valuation:
- I reduced the MR
- Increased my letting period to 12 months
Describe the office in Embankment
condition and specification
- GRADE B Spec
- No defects
- Period building above retail on the 4th floor
- 2,000 sq ft NIA
- Perimeter trunking
- Carpeted floors
- Wall mounted aircon
- Single Glazing
- cellular office - split between 5 rooms
- EPC of D
Describe the office in the City of London that you did a lease renewal for?
Condition?
- GRADE B SPEC
- 7 floors
- 2,000 sq ft per floor
- 14,000 SQ FT
- Reasonable condition
- 1920s building
- open plan
- carpeted floors
- dated
Describe you retail unit in Bedford
- Period Building
- Solid brick construction
- Ground Floor retail with offices above
- Concrete floor
- 800 sq ft ZONE A
- 1,800 sq ft overall
What were the other retailers on the high street?
- Clarkes
- Costa
- Vodafone
What on inspection made you advise the client you could get a rental reduction?
High vacancy rate
What prices did you determine the high street would command, compared to the secondary retail pitch in Eltham?
High Street - £40 ZONE A
Secondary pitch - £30 ZONE A
How do inspections differ / are similar if you are inspecting for valuation purposes and lease renewal purposes?
They are similar as in both you have to find the market rent.
How did you age your properties?
- I obtained the building report from Costar
- spoke to my building surveyors
- spoke to the client
- planning consent
When conducting your lease renewal for your office in the City of London, did you discount the rent per floor?
Yes - the lower floors had less natural light.
Discounted basement to 50% of top floor.
Ground floor 80% of MR of £45
Top floor (4,5) £50 (10% premium)
Middle floors (3,2,1) £45 (100%)
Ground floor (G) £32 (80%)
Basement (B) £25 (60% MR)
Overall: £ 42 psf
For your retail parade in Eltham, why did you advise the client it would be necessary to assume a substantial void period?
As the tenants were local covenants and the risk of leaving was higher
What are the 4 common forms of foundation?
- Trench - usually residential
- Raft - sandy soil conditions
- Piled - reinforced concreate cylinders
- Pad - for columns to be spread evenly
3 main forms of damp?
i. Rising damp - soil
ii. Penetrating damp – fault guttering, leaking pipe
iii. Condensation- lack of ventilation
Top specification of Retail, Industrial and Offices?
x
Where do you do find whether it has asbestos?
IF HAS ASBESTOS?
- Should be on site in an Asbestos Register
- Roofing
- Central heating points
- Boilers.
MAKE SURE YOU KNOW ABOUT JAPANESE KNOTWEED !!!!!!!!!!!!
x
What are the key take aways from Surveying Safely 2018?
- RISK ASSESSMENTS
2. SAFE PERSON CONCEPT
Talk me through the safe person concept..
Employees much take responsibility for their own, their colleagues and others health and safety whilst on inspection.
They must remain vigilant, adaptable and display awareness whilst on site.
How does an inspection differ for a lease renewal rather than valuation?
Common: location, condition, defects etc.
But for lease advisory / leasing purposes you are more looking for specific things that impact the marketability of the property such as presentation and flexibility.
Although that is all important and can influence the rent for a valuation, it is arguably more important for agency purposes.
With you office in Embankment, did you inspect it alone?
No
If you had of inspected the office in Embankment alone, how would you have approached it differently?
Adhered to my company’s lone working policy.
- Buddy system
- Charged Mobile phone
- Diary up to date
How was the office in Embankment constructed?
Concrete construction
How did you know it was of concrete construction? How do you usually tell?
Usually with properties made from concrete construction, there would be more columns and they will have a narrow span.
What age was the building for your inspection in Embankment?
1920s period building above retail
What specification was the office in Embankment for valuation purposes? (VACANT)
It was of Grade B specification:
- Cellular office
- 2,000 sq ft total between 5 different rooms
- Perimeter trunking
- Carpeted floors
- Wall mounted aircon / comfort cooling
- Lack of natural light
How does this compare to a GRADE A Office?
GRADE A SPEC IS SET BY THE BRITISH COUNCIL FOR OFFICES
- ceiling height was inline
However:
- lack of natural light
- no suspended ceilings or raised floors (perimeter trunking, carpeted floors)
- no modern aircon (wall mounted aircon)
Who lays out Grade A spec?
THE BRITISH COUNCIL FOR OFFICES
