扒哥吃瓜

Distribution聽warehouses聽are聽generally聽located聽in areas with good聽connections to main roads, motorway junctions, rail freight terminals,聽ports聽and airports. They will often be situated on the periphery of large towns and cities enabling easy access to a suitable workforce and the national road network.聽聽

They聽are聽designed primarily for storage, sorting, and movement of goods.聽They usually have extensive loading dock facilities,聽with聽numerous聽dock levellers,聽HGV yard areas (manoeuvring + parking)聽and聽dedicated goods-in and goods-out areas.聽聽

They normally have聽large open floor areas聽optimised for聽racking, goods-in/goods-out areas, conveyor systems. Also, often include large marshalling areas for pallets and goods.聽

One of the primary value significant factors for聽the聽distribution/logistics聽sector聽is cubic capacity. This聽determines聽how much product can be stored in each property. The main determinate for cubic capacity is eaves height.

The valuation of this class of property is the responsibility of the Industrial, Commercial and Crown team within the National Valuation Unit (NVU).

The Combined Industrial Class Co-ordination Team (CCT) has overall responsibility for the co-ordination of this class.

The team are responsible for the approach to and accuracy and consistency of valuations. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

Caseworkers have a responsibility to:

• follow the advice given at all times
• not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team
• seek advice from the co-ordination team before starting any new work

There is no specific legal framework for this class.

Distribution warehouses聽should be measured to Gross Internal Area (GIA).听听

VO measures height up to the eaves.聽VO values and devalues on this basis. It聽isn鈥檛聽appropriate to聽use other heights such as clear height,聽or haunch height, but it is good practice聽to record this information in the survey details.聽

For full details please refer聽to the definitions contained in the VOA Code of Measuring Practice for Rating Purposes.

Rating surveys should be captured on the Rating Support Application (RSA).聽Rateable聽Plant and Machinery (P&M)聽must聽be recorded on the Non-Bulk Server (NBS).聽

Plans and surveys should be stored in聽the聽appropriate folder聽within the Electronic Document Records Management (EDRM) system.

Rental and rental comparison approaches should be used聽to value this class of property with the聽appropriate adjustments聽made.聽

If in doubt, the class co-ordination teams are available to聽assist聽with聽guidance.

• Rating Support Application聽
• Class co-ordination team聽
• Non-bulk server

1. Overview

1.1. The VOA standard of measurement for factories, workshops and warehouses is Gross Internal Area (GIA). An explanation of measurement to GIA can be found in the聽VOA Code of Measuring Practice for Rating.

1.2. The Code of Measuring Practice e-learning provides useful information on measuring industrials and can be found on the NDR Learning Homepage.

1.3. Industrial properties come in all shapes and sizes, from small workshops to huge manufacturing sites. There are many hazards to consider so you must follow the site rules and use your personal protective equipment. Health & Safety implications can be found in聽Outdoor Health and Safety - Personal Protective Equipment.

2. External Features

2.1 The Site

A pen picture should be provided of the locality that notes the following:

1. Location
2. Situation
3. Advantages
4. Disadvantages

2.2. An example might be:

鈥淭he property is situated on an established industrial estate with good access via an existing made-up road also serving other parts of the estate. There are good main road and rail links nearby but parking on site is limited.鈥�

3. Access, loading and unloading facilities

3.1. Ease of access to and within the property should be noted. The height and width of all access doors must be recorded, together with details of construction and the method of operation (e.g. metal roller shutter, electrically operated).聽The presence of dock levellers should be noted.

3.2. The position of all access doors must be shown on the plan and any problems with access that may affect loading and unloading or general access recorded.

3.3. The height and width of access doors is important not only to the daily operations at the property but also with regard to聽plant and machinery.

4. Car Parking

4.1. Note the number of allocated car spaces or calculate the approximate size of the overall parking area together with details of the surface finish.

5. Ancillary Storage Land

5.1.聽Any ancillary storage land should be measured separately and the surface finish noted. Any land suitable for storage, which is unused, should also be recorded. Ask the occupier if the land is used exclusively by them or is shared. If shared make a note of the area and details of the other occupiers.

5.2. It is important to be aware that there are many different approaches to the way in which ancillary land is valued. It is important to be aware of which approach applies to each area. If in doubt please ask your technical advisor.

5.3.聽 Where there are temporary buildings, cabins and/or storage containers (SCN) etc. located on land, then the area of this land must not be deducted. The value of the temporary buildings and/or storage containers and the like, must be added in addition to the land value. Depending on the circumstances, this can be done in the valuation either by a suitable line entry or by using other additions. Other additions is the preferred approach.

6. Age

6.1. It is important to correctly identify the age of any property when carrying out an inspection. The occupier should be able to give you information on the age of the property. If you are unable to obtain this information take photographs to allow identification. The Industrial Age Recognition Guide is a useful tool to help identify the age of your industrial property.

7. Internal features

7.1. Ancillary Accommodation

You should note any ancillary accommodation that may be available e.g. office space, toilets, washrooms, canteens etc.

7.2. Measuring to GIA, ancillary accommodation within the same building may not need to be separately measured if it is of similar quality and value as the main space. Only note the facilities and finish.

7.3. Office space within solid walls or on mezzanine/1st floors, or areas of differing quality will need to be measured.

8. Heights

8.1.聽The height of an industrial property can have a significant effect upon the value. Eaves height is often used in industrial scales to determine value.

8.2. To record a height note it on the plan at the point it was measured and circle it to distinguish it from the linear measurements.

8.3. The following diagrams show three different types of height in traditional and modern industrial units. The Inspection Checklist only requires you to note the eaves height, which should be measured internally. If the clear height is significantly lower than the eaves height, this might affect the value of the property so should also be recorded.

The following diagrams are added for clarity and show the points of measurement for internal eaves height and clear height. It is worth noting that some letting brochures will only state clear height (measured to the underside of the eaves haunch).

8.4. Definitions of heights can be found in the VOA Code of measuring practice: definitions for rating purposes. Those for internal eaves and clear height are reproduced below.

8.5. Internal eaves height: the height between the floor surface and the underside of the roof covering, supporting purlins or underlining (whichever is the lower) at the eaves on the internal wall face.

8.6. Clear height: the height between the floor surface and the lowest part of the roof trusses, ceiling beams, roof beams or haunches at the eaves.

8.7. The RICS code of measuring practice has similar definitions with an explanatory diagram which is shown below for reference.

8.8. There may be a number of buildings on the site all with different internal eaves heights in which case separate survey units may be needed to record differing heights.

9. Floor

9.1. Differences in the loading capacity of floors should be recorded. Limitations on the load carrying capacity of the floors (particularly 1st floors and mezzanine storage platforms) should be noted, where available, as this may restrict the full use of the floor.

10. Mezzanine

10.1. A Mezzanine is a 鈥淪upported First Floor鈥� (SFF) a floor or series of floors installed independently inside part of the of the main building.

10.2. The construction details, method of access and the clear height above and below the SFF should be recorded, the area below is usually shown as a separate item and deducted from the overall GIA of the ground floor.

10.3. Where possible you should record the load carrying capacity of the Mezzanine floor. This can usually be found on a plate attached to the steel support framework.

11. Bay widths and stanchion grids

11.1. A note should be made of any item, which restricts clear floor space. Columns, piers, pillars, stanchions etc are all included within the GIA and there is no need to take individual measurements of these features. The number, their approximate positions and sizes should be shown on the plan. Where pillars or stanchions form a grid within an area the grid widths should be shown.

12 Lighting

12.1. The provision of natural and artificial lighting must be recorded. For example 鈥樷�機lear Perspex roof panels and suspended strip lights鈥欌��.

13. Plant and machinery

13.1. Industrial property, particularly workshops and large factories, are the bulk property where the majority of Plant & Machinery can be found.

1. Market appraisal

1.1 Prime headline rents continue to increase. Demand remains robust and supply has been boosted by the release of significant numbers of refurbished second-hand stock back into the market caused by an increasing number of occupiers re-locating out of existing buildings into newer higher quality space.

1.2 There is optimism for sustained rental growth through 2024 with evidence of very short void periods on newly released Grade A stock. Grade A developments have an ever increasing focus on quality, sustainability and their environmental impact.

2. Changes from the last Practice Note

2.1 For lists up to and including the 2023 Rating List, the National Valuation Unit had primary responsibility for all distribution warehouses with a total significant area of 8,000m² and above. The Regional Valuation Offices had primary responsibility for all warehouses below 8,000m².

For the 2026 Rating List The National Valuation Units will be responsible for all distribution warehouse properties with a total significant area (GIA) of 2000 m虏 or more.

The Regional Valuation Units will continue to have responsibility for traditional warehouses, factories, and workshops up to 20,000m².

2.2. 2026 Rating Quantum scale for Distribution Warehouses

The following will be applied for the 2026 list (size in m²) -

Quantum is calculated having regard to Total Significant Area and would not include mezzanine or canopy areas. Nor would it include any other accommodation valued at a factor of less than 0.30.

2.3. 2026 Rating List Eaves Height Adjustments

Distribution warehouses with a total significant area of 8,000m² and above.

These adjustments remain unchanged from 2023.

• the standard eaves height will fall between 12 and 14m
• for an eaves height above 14m an addition of 1% for each full metre above 14m will apply
• for an eaves height below 14m a reduction of 1% per full metre will apply between 12m and 10m and below 10m a further reduction of 2% for every full metre will apply

Eaves height adjustment over 8,000m²

2.4 Distribution warehouses with a total significant area between 2,000 and 8,000m².

• The standard eaves height will fall between 8 and 10m
• For an eaves height above 10m a 1% addition for each full metre above 10m will apply
• For an eaves height below 8m a reduction of 1% for every full metre below 8m will apply

Eaves height adjustment between 2,000m² to 7,999m² |

3. Co-ordination

Distribution Warehouses are a specialist class dealt with by the National Valuation Unit (NVU).

4. Ratepayer discussion

4.1 A small number of discussions have taken place for the 2026 list with ratepayers or industry representatives.

5. Valuation scheme

5.1 The rentals comparison method should be utilised in valuing this class for rating purposes.

5.2 Distribution Warehouses are valued by reference to the valuation scale.

5.2 Primary value determinants will be location, eaves height, loading facilities and size. Access to the motorway network, major arterial roads and transport infrastructure is key to what rent might be achieved.

5.3 Significant rental evidence is available for this class of property, but care must be taken not to accept the headline rents at face value. When considering rental evidence from new lettings, rents will commonly require adjustment to take account of rent free periods, capital payments, stepped rent arrangements or other incentives. Lettings are often on the basis of minimal fit out and adjustment for tenants鈥� improvements will generally be required.

5.4 Rental evidence indicates that in the vast majority of locations, distribution warehouses achieve higher rental levels than standard factory, warehouse and workshop properties. Accordingly, levels of value for this class must be derived from rental evidence on comparable distribution warehouses. It isn鈥檛 appropriate to compare distribution properties directly with local factory, workshop and warehouses. These are valued on different valuation schemes and apply a different valuation scale 鈥� .

Also, depending on local market practice, these schemes adopt various approaches to quantum, eaves height, ancillary land and parking. They are valued and devalued on a different basis to distribution warehouses. This means that it isn鈥檛 appropriate to compare unadjusted basic rates between distribution properties and local factories, workshops and warehouses, because they are calculated in different ways, making them incompatible with each other.

1. Market appraisal

1.1聽The distribution market continued its robust upward curve through 2018 and into 2021. The ongoing growth in e-commerce combined with a relatively modest increase in supply of Grade A units (new and prime located) has resulted in significant rental growth in both prime and secondary properties. Occupier demand continues to be dominated by high street retailers, grocers, e-commerce and manufacturers.

1.2聽The impact of the COVID pandemic on industrial property values was marked by considerable variation between sectors. In the large distribution warehouse industry media comment around the Antecedent Valuation Date (AVD) focused on the shortage of available warehouse space at a time of hugely increased demand.

2. Changes from the last practice note

2.1聽The approach to fire protection and air conditioning has been reviewed. The former two-tier approach adopted for the 2010 and 2017 Rating Lists is now replaced by a single tier system, +2.5% for fire protection and +5% for air conditioning.

The addition for fire protection will include water tanks and ancillary items. These should not be added as additional plant and machinery.

3. Co-ordination

3.1聽Large Distribution Warehouses (total significant area over 8,000m²) are a specialist class dealt with by the National Valuation Unit. Estates of mixed size where units below 8,000m² fall to be dealt with by the Regional Valuation Unit must be closely coordinated and advice must be sought from the National Valuation Unit to ensure valuation consistency.

4. Ratepayer Discussions

4.1 No ratepayer discussions have taken place for the 2023 list with ratepayers or industry representatives.

Valuation scheme

5.1聽The rentals comparison method should be utilised in valuing this class for rating purposes.

5.2聽Significant rental evidence is available for this class of property, but care must be taken not to accept the headline rents at face value. When considering the evidence from new lettings rents will commonly require adjustment to take account of rent free periods, capital payments, stepped rent arrangements or other incentives. Lettings are often on the basis of minimal fit out and adjustment for tenants鈥� improvements will generally be required.

5.3聽Primary value determinants will be size, eaves height, loading facilities and location. Access to the motorway network and major arterial roads is key to what rent might be achieved.

5.4聽Rental evidence indicates that in the vast majority of locations the base rate applied to Large Distribution Warehouses will be in excess of local warehouse tone. Accordingly, levels of value for this class must be derived from rental evidence on Distribution Units and not indirectly from local industrial values.

Appendix 1 - Quantum allowances

For the 2023 Rating List the national agreement is as follows:

Note 1. Adjusted Gross internal area (GIA) for the purpose of this agreement means, the total GIA as defined in the RICS/VOA Code of Measuring Practice but then excludes mezzanines and canopies and any other elements of the accommodation which have a valuation factor applied of less than 0.3.

Appendix 2 - Eaves height adjustments

For the 2023 Rating List the national agreement is as follows:

2023 Rating List

1. Market appraisal

1.1 Rental evidence remains patchy but generally throughout the period from late 2008 to 2010 the market was distinctly depressed with values generally falling. The low point was probably 2009 to 2010 but the market picked up a little from 2011. The values of prime stock as at 2015 are now broadly equivalent to those of 2008 with the possibility of some rental growth in the best locations. Wales remains the weakest performing region where prime levels are possibly down on 2008 levels.

1.2 Secondary and older stock in all areas is likely to show rental levels below those of 2008. Evidence of lettings of tertiary and old stock is rare but asking rents are often below 2008 levels.

2. Changes from the last practice note

There was no practice note for this class for 2010 but the valuation approach is unchanged from 2010 and previous lists. The approach is that of direct rental evidence or by rentals comparison. Comparison with adjoining regions should also be made so that there is a smooth transition in values from one area to another.

3. Co-ordination

Large distribution warehouses (total significant area over 8,000m²) are a specialist class dealt with by the National Valuation Unit (NVU). Estates of mixed size where units below 8,000m² fall to be dealt with by the Regional Valuation Unit must be closely coordinated and advice must be sought from the NVU to ensure valuation consistency.

4. Ratepayer discussions

No ratepayer discussions have taken place for the 2017 list with ratepayers or industry representatives.

5. Valuation schemes

5.1 Rental evidence is available for this class of property and the rentals comparison method should be utilised in valuing this class for rating purposes.

In the 2005 Rating list quantum allowances were provided for by reference to a memorandum of agreement, where appropriate and this was carried forward to the 2010 list. This should be continued in accordance with the memorandum. Please follow this link. Similarly a memorandum of agreement was reached in respect of oversupply for the 2005 list however this is not now judged to be the case for subsequent lists. Consequently this allowance should not be applied as at Revaluation the levels of value adopted reflect the supply.

5.2 Values are regionally based and will vary widely across the country and by reference to how well the hereditaments are served by motorways, arterial roads and their closeness to docks and the market. When considering the evidence from new lettings rents will often require adjustment to take account of rent free periods, capital payments, stepped rent arrangements or other incentives. Lettings are often on the basis of minimal fit out and adjustment for tenants鈥� improvements will generally be required. Adjustments for height, end and other allowances should be as for the 2010 list.

5.3 Clad rack warehouses, the value of this class was recently tested in litigation the outcome of which was that while the feature is rateable as 鈥榓 building鈥� no premium value should be applied over standard warehousing except the additions for extra height, which may be considerable, and other standard features such as fire protection, heating and so on.

5.4 For the 2010 Rating List a two tier addition for fire protection and air conditioning was agreed. This agreement will continue for the 2017 Rating List.

• distribution warehouses with a base price of 拢50 and above 鈥� Fire protection 2.5% and Air conditioning 5%
• distribution warehouses with a base price below 拢50 鈥� Fire protection 3% and Air conditioning 10%

The addition for fire protection will include water tanks and ancillary items. These should not be added as additional Plant and Machinery.

Practice note: 2017 - Appendix 1: Quantum allowances

The national agreement is as follows:

Note 1. Adjusted Gross internal area (GIA) for the purpose of this agreement means, the total GIA as defined in the RICS/Valuation Office Code of Measuring Practice but then excludes mezzanines and canopies and any other elements of the accommodation which have a valuation factor applied of less than 0.3.

Appendix 2 鈥� Eaves Height Adjustments

For the 2017 Rating List the national agreement is:

2017 Rating List