Specialist Properties are best summarised as properties that are out of the ordinary and ones that have a niche or very thin market.
- The key to providing a quality and objective valuation for specialist properties is in accurately identifying the market for which it exists;
- In other words the Valuer needs to find comparable market evidence to compare to the subject property.
Here are some examples of specialist properties:
- Stand-alone car wash facilities;
- Car parking stations;
- Funeral Parlors/complexes;
Finding evidence is not always possible; for example – cemeteries are generally Council or Government owned and simply do not sell.
So when faced with this challenge, the Valuer required is one with good experience and one that has sufficient life skills to think through and make logical considerations and decisions.
This work should always be conducted by a Senior Valuer with extensive experience.
Additional considerations when assessing value can include:
- Applying a greater leasing up period then a more traditional commercial property;
- Researching a wider geographical area for both leasing & sales evidence and having the skill to draw accurate comparisons;
- Often yields can be higher to reflect the additional risk associated with this investment;
- Replacement Insurance values can often be much higher on a rate per square metre compared to traditional commercial buildings (eg. Hospital)
Australian Valuers are very fortunate to have some highly specialised experienced valuers within the group.
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