Rental Evidence Flashcards
Best rental comparable(s)?
Unit 7, 541 Blandford Rd, Poole (£8.31)
Units 1-4 Airspeed Rd, Christchurch (£8.84)
Unit 7, 541 Blandford Rd, Poole
- £8.31
- 10 year / 2 RF
- 2,286 sq ft
Similar specification
* Mid-terrace unit of steel portal frame construction
* Roller shutter door
* Eaves height 5.68m
* Built 1990
Similar location
* Access to Bournemouth and the wider market via the A31
* Industrial estate in mostly residential area
Recent
* Feb-22
Units 1-4 Airspeed Rd, Christchurch
- £8.84
- 5 year / 6 RF
- 15,418 sq ft
Similar location
* Priory Industrial Park
Superior specification
* Refurbished 2020 = superior spec depsite being older (1982)
* Eaves height 6.70m
Suite 11, Newmans Copse Rd, Southampton
- 8.96
- 10 year / 8 RF
- 4,687 sq ft
Superior location
* Hounsdown Business Park - Amazon
* Southampton - connectivity to London and wider UK market
Superior specification
* Electric loading door
* Built 2003
Suite 210, Ampress Lane, Lymington
- £8.44
- 10 year / 6 RF
- 4,930 sq ft
Similar location
* Lymington 10 miles east
* Similar industrial estate with occupiers such as Travis Perkins, Howdens
Inferior specification
* Steel portal frame construction with roller shutter door
* Eaves height 4.50m
* Built 1980
What MR and lease terms did you adopt?
£8.50 headline / 10 year / 5 yearly break and RR / 6 months rent free
Subject Property letting?
- Unit 14
- £8.00
- Q4 2020
- No RF
Why did you adopt a headline basis?
- Market practice within the UK for valuers to be explicit with applying void/RF assumptions to leases expiring with 5 years
- Just a more transparent way of valuing. Net effective = headline + rent free
Why did you assume 6 months rent free?
- Spoke to agents
- Although Poole = 2 months rent free, the majority of the evidence indicated between 6-8 months was being achieved. Also likely that a tenant would require longer for fit-out period.
What do you mean it was reversionary?
Passing rent = £7.74
MR = £8.50
