Industrial Property Valuations

Industrial Valuation Services

• SMSF Industrial Property Valuations

• Capital Gains Tax (CGT) Valuations

• Financial Reporting Valuations

• Insurance Replacement Cost Assessments

• Industrial Rental Assessments & Determinations

• Compulsory Acquisition & Resumption Valuations

• Related Party Transfer Valuations

• Independent Market Valuations

Industrial Property Valuation Frequently Asked Questions 

What is an industrial property valuation?

An industrial property valuation is an independent assessment of the market value of an industrial property as at a specified date. The valuation considers the property's location, land area, building improvements, condition, configuration, access, zoning, tenancy arrangements and prevailing market conditions.

Depending on the property and purpose of the valuation, relevant sales, rental evidence, market yields and other industrial market evidence may also be analysed.

What types of industrial properties can Woods Valuation Services value?

Woods Valuation Services provides valuations across a broad range of industrial property types, including:

• Strata-titled industrial units and warehouses

• Freestanding warehouses and factories

• Manufacturing and processing facilities

• Logistics and distribution facilities

• Trade and service industry premises

• Workshops and storage facilities

• Showroom and warehouse properties

• Hardstand and storage yards

• Multi-tenanted industrial properties

• Vacant industrial land

Both owner-occupied and investment properties can be assessed.

What areas do you provide industrial property valuations in?

Industrial property valuation services are provided throughout Greater Brisbane and the Gold Coast, including Brisbane, Logan, Ipswich, Moreton Bay, Redlands and surrounding industrial markets.

Selected instructions can also be undertaken throughout the Sunshine Coast and regional Queensland, depending on the property and purpose of the valuation.

What can an industrial property valuation be used for?

Industrial property valuations may be required for a wide range of purposes, including:

• Self-Managed Super Fund (SMSF) reporting

• Capital Gains Tax (CGT)

• Financial and statutory reporting

• Insurance replacement cost assessments

• Related-party transactions

• Internal transfers and restructuring

• Rental assessments and rent reviews

• Lease negotiations

• Compulsory acquisition and resumption matters

• Estate and succession planning

• Private advisory and decision-making purposes

The appropriate scope and reporting requirements will depend on the intended use of the valuation.

How is an industrial property valued?

The valuation methodology depends on the characteristics of the property, its occupancy and the available market evidence.

For owner-occupied industrial properties, direct comparison with sales of comparable industrial properties may provide an important indication of value. Analysis may include rates per square metre of building area and land area, together with consideration of differences in location, building quality, site coverage, access and utility.

For leased investment properties, the property's rental income, lease terms, market rent and prevailing investment yields may also be considered. Where appropriate, capitalisation of income and other income-based valuation methods may be applied.

More than one valuation approach may be considered where this assists in supporting the adopted market value.

What factors affect the value of an industrial property?

Industrial property values can be influenced by a wide range of factors, including:

• Location and proximity to major transport infrastructure

• Land area and configuration

• Building size and site coverage

• Warehouse clearance and functionality

• Office-to-warehouse ratio

• Vehicle and heavy transport access

• Loading and unloading facilities

• On-site car parking

• Hardstand and external storage areas

• Building age, condition and quality

• Zoning and permitted uses

• Development potential

• Lease terms and tenant profile

• Passing and market rental levels

• Prevailing investment yields

• Supply and demand within the local industrial market

The relative importance of each factor varies considerably between properties.

Can you value a strata industrial unit?

Yes. Strata-titled industrial units form a significant part of the industrial property market and can be valued for SMSF, taxation, financial reporting, related-party transactions and other purposes.

The assessment typically considers the unit's building area, configuration, warehouse and office accommodation, car parking, access, body corporate arrangements, location within the complex and recent sales of comparable industrial units.

Can you value a large freestanding warehouse or industrial facility?

Yes. Woods Valuation Services undertakes valuations of freestanding industrial properties ranging from conventional warehouse and office facilities through to larger manufacturing, logistics, storage and specialised industrial assets.

Larger properties can require more detailed consideration of land value, improvements, site coverage, building utility, leasing evidence and investment market conditions.

Do you value vacant industrial land?

Yes. Vacant industrial land and industrial development sites can be valued.

Relevant considerations may include site area and configuration, zoning, development potential, access, services, topography, surrounding development and sales of comparable industrial land.

Where a site has particular development constraints or unusual characteristics, these may require additional investigation as part of the valuation.

Can you value a tenanted industrial property?

Yes. Both tenanted and vacant industrial properties can be valued.

For a leased industrial investment, the valuation will generally consider the current passing rent, market rent, lease commencement and expiry dates, options, rent review provisions, outgoings, incentives, tenant covenant and remaining lease term.

These factors are considered together with relevant investment sales and prevailing market yields.

Can you value an owner-occupied industrial property?

Yes. An industrial property does not need to be leased to be valued.

For owner-occupied properties, greater emphasis may be placed on comparable sales evidence and the property's underlying land and building characteristics. Market rental evidence may also be considered where relevant.

Do you provide industrial property valuations for SMSFs?

Yes. Independent industrial property valuations can be prepared for Self-Managed Super Funds where industrial property is held by the fund.

Industrial SMSF assets commonly include warehouses, factories, workshops, industrial units and other business premises. Valuations can be prepared to assist trustees, accountants and auditors with annual financial reporting and compliance requirements.

Can you prepare a retrospective industrial property valuation for Capital Gains Tax?

Yes. Retrospective industrial property valuations can be prepared where a market value is required at an earlier date for Capital Gains Tax or other taxation purposes.

The assessment is undertaken using market evidence relevant to the retrospective valuation date rather than today's market conditions.

The availability and quality of historical sales, leasing and property information can affect the scope of a retrospective valuation.

Do you provide industrial rental valuations?

Yes. Industrial rental assessments can be prepared for lease negotiations, market rent reviews, rental determinations and other advisory purposes.

The assessment may consider the property's size, configuration, location, condition and utility together with comparable industrial leasing evidence, incentives, outgoings and the terms of the relevant lease.

Do you provide industrial property insurance valuations?

Yes. Insurance replacement cost assessments can be prepared for industrial buildings and associated improvements.

An insurance valuation differs from a market valuation. Rather than assessing the amount for which the property would sell, the assessment considers the estimated cost associated with replacing the insured improvements, together with relevant allowances where applicable.

Does an industrial property valuation require an inspection?

A physical inspection will generally be undertaken where required for the particular valuation assignment.

The inspection assists in confirming the property's accommodation, condition, construction, layout, access and other characteristics relevant to value.

Desktop assessments may be appropriate for some assignments where sufficient reliable property information is available and the intended purpose permits a restricted-scope assessment. This is considered on a case-by-case basis.

What happens during an industrial property inspection?

The inspection generally involves viewing the land, building improvements and relevant internal and external areas of the property.

Depending on the asset, consideration may be given to warehouse accommodation, office areas, ceiling or clearance heights, loading facilities, access, hardstand, car parking, building condition and the overall functionality of the property.

The inspection is undertaken for valuation purposes and should not be confused with a building, structural, environmental or engineering inspection.

What information do you need to value an industrial property?

The information required depends on the property and valuation purpose. Where available, useful information may include:

• Property address and ownership details

• Building and land areas

• Building plans or surveys

• Current lease documentation

• Rental and outgoings information

• Details of recent capital expenditure or improvements

• Body corporate information for strata properties

• Rates and statutory notices

• Previous valuation reports where relevant

• Any other information materially affecting the property

If you do not have all of this information, an initial quote can still generally be provided from the property address and purpose of the valuation.

How long does an industrial property valuation take?

Turnaround time depends on the size and complexity of the property, the purpose of the valuation, availability of information and the extent of market research required.

An expected timeframe will be provided when the scope and fee are confirmed. If a valuation is required by a particular deadline, this should be advised when requesting a quote.

How much does an industrial property valuation cost?

Fees vary according to the property type, size, location, complexity and purpose of the valuation.

A straightforward strata industrial unit will generally require less work than a large freestanding investment property, multi-tenanted industrial complex or specialised manufacturing facility.

For a fixed-fee quote, provide the property address, valuation purpose and required timeframe.

Will I deal directly with the valuer?

Yes. Woods Valuation Services is an independent valuation practice, and clients deal directly with the valuer responsible for their assignment.

This provides a direct point of contact from the initial enquiry and inspection through to completion of the valuation report.

Who prepares the industrial property valuation?

Industrial property valuations are prepared by Ryan Woods, a Certified Practising Valuer (AAPI) and Queensland Registered Valuer with more than 15 years of property valuation experience.

Woods Valuation Services provides independent valuation advice throughout Brisbane, the Gold Coast and South-East Queensland.