Level 2 - Industrial Unit Clevedon

Question 1

Tell me about the Property?

Answer 1

Mid-terrace industrial unit
Steel portal frame with brick and profiled steel panel elevations and pitched roof
5,300 sq ft
10% translucent roof lights, uPVC windows
Poor quality mezzanine which impact eaves
Eaves 5.5m but mezzanine 2.4m
one roller shutter
Good access to motorway

Question 2

What method did you use to value?

Answer 2

Comparable method with verification through investment

Question 3

How did you value MV?

Answer 3

I used comparables from recent evidence which indicated a price per sq ft to be £95.00 psf
New build in a sub-10,000 sq ft bracket to be £125.00 psf, agents suggest discount for older quality unit
Investment method at opinion of MV at yield of 6.1%, in line with market sentiment

Question 4

What was the purpose of the valuation?

Answer 4

For acquisition purposes

Question 5

What was the MV?

Answer 5

£495,000

Question 6

What was the yield?

Answer 6

6.1% equivalent

Question 7

How did you form MR?

Answer 7

Comparable evidence whereby established rents between Weston-S-Mare and Avonmouth to be £6 - £7
Due to specification and location, I decided £6.25

Question 8

What was MR?

Answer 8

£6.25 psf

Question 9

How did good access affect value?

Answer 9

Located on M4, so logistics to reach wider motorway network was good
Reduction in travel from motorway
Occupiers may have lots of value based on access to motorway
This affects value as deemed more attractive

Question 10

How did poor immediate access and turning access affect value?

Answer 10

Road to site was often blocked by parked cars
Reduced ease for HGVs
Limited turning would hinder operations by a tenant
Small lorries required or skilled drivers or delayed times
Limit occupier pool due to unattractiveness of immediate access

Question 11

How did you know the roof was encapsulated asbestos?

Answer 11

Duty Holder provided me with an asbestos register that explained

Question 12

What are the benefits of encapsulated asbestos?

Answer 12

protects asbestos being disturbed
Provides insulation benefits

Question 13

What would you have done if noticed damaged asbestos?

Answer 13

Left immediately and advised all others present to evacuate
Report to duty holder
Advise to seek professional services to assess damage

Question 14

What are the types of asbestos?

Answer 14

Brown
Blue
White

Question 15

When was asbestos banned?

Answer 15

Brown & Blue - 1985
White 1999

Question 16

Which asbestos is the worst?

Answer 16

Blue & Brown

Question 17

How would asbestos issue affect value?

Answer 17

If damaged asbestos, it must be formally addressed
managed and refurbishment survey
Would be deemed unsafe for occupation if unfit

Question 18

Is there any regulation for Abestos?

Answer 18

Control of Asbestos Regulation 2012

Question 19

Is there any RICS guidance on Asbestos?

Answer 19

RICS Guidance Note Asbestos: Legal Requirements and Best Practice for Property Professionals and Clients 2021

Question 20

What are the 5 steps in asbestos management?

Answer 20

1. Duty holder must assess if contains asbestos
2. Assess risk and produce management plan
3. Produce Asbestos register
4. Make register available to all parties who might disturb
5. Review register regularly (6 months)

Question 21

Why would lower eaves height from mezzanine impact value?

Answer 21

It reduces the stacking capacity and ability to operate

Question 22

Tell me about the mezzanine?

Answer 22

it took up 75% over the footprint of the building
Reduced eaves by half
was of poor quality
Tenant improvement made of metal

Question 23

Why did you disregard the mezzanine completely?

Answer 23

The mezzanine was of very poor quality
it had no lift service, narrow stair case and needed refurbishment
It was too large taking up 75%
Discussed with agents and they deemed it to have no value
any potential tenant would strip it out before occupation

Question 24

Tell me about your valuation in Clevedon

Answer 24

Point 1 – I valued an office in Clevedon which had reasonable access and was of a higher standard compared to neighbouring units
Point 2 – The property had a large mezzanine which limited eaves height and was of poor quality
Point 3 – I attributed nil value to the mezzanine in my valuation, and considered the other specification when forming my value.

Question 25

What was the size of the unit?

Answer 25

5,300 sq ft

Question 26

What was the comparable MR Range?

Answer 26

£6 - £7

Question 27

What was the comparable MV range?

Answer 27

£75 - £120