VALUATION OF OFFICES

This valuation is normally done using the investment

method mainly because offices are built for
investment purposes.
The character of the building is very critical in
coming up with values of properties.
 OFFICES CONT,

However when valuing properties with market evidence, the best is to use
the comparable method. When
 WHEN COMPARINGB OFFICES IN A VALUATION
YOU COMPARE THE FOLLOWING FEATURES

 Offices comes with different sizes, shapes and different services.

 Office accommodation of today emphasizes on flexibility.
 Offices of today have two main spaces , that is the central services and the office
accommodation itself.
 The central services include toilets, lifts and lift corridors, kitchen, service duets etc.
 Flexibility is a very important component of office space ie the tenant should be
able to decide how he wants to utilise his office space and lay it out.
1.
 FLEXIBILITY IS ARCHIEVED THROUGH:

PARTITIONING : demountable portions rather than brick partitions can allow more flexibility as they can
be dismantled and moved about. This allows for offices to be layed-out either in open planned, workstations
where there is half height or as portable portions.
CORRIDORS: these are very important where more than one tenant use the floor. Corridors should provide
access to offices and fire escape. A good office space should have as minimal as possible space for corridors.
CEILING AND LIGHT: providing offices with suspended ceilings allows for office lights to be moved
around according to the layout of the tenants.
ELECTRICAL DUETING : modern offices uses a number of office equipment hence requires a number
of duets so that all appliances can be ducted by power. Unlike old buildings of early age where offices use
very few electrical appliances. Those old offices were doing good with a single power duet.
SELF CONTAINMENT : modern offices require self containment for security of people and goods and also
for confidentiality in business. offices that open up into public spaces increases the number of entry points
thus reduce security . For self containment it is important to reduce entry points to each office suite.
  In valuing offices for rental, comparison can be made to rentals of similar
properties that had been let. This analysis will give a picture of the range of possible
rentals that can be charged on the property in question.
 It is important to give your analysis in terms of rates per square meter.. In your
analysis properties with odd characteristics should be eliminated from the
comparison and only focus on relevant properties ie buildings with similar services
make good comparisons.
 It is not good to compare old and new buildings. Buildings with additional facilities
should be given more value than those with less. Eg
 building A built in 1970s has floor area of 350m2 at let at 12200 for 3 years.it
has demountable partitions, air conditioners.
 Building B built 1960s has floor area of 250 let @ 7500 has brick partitions.
 Building C has floor area of 485, has partitions [demountable] its let at 40 000/ m2
 Building D has 325m2, parquet floor demountable partitions@ 9750/month
 Building E built 1970s, area of 375m2 rent 12 200
 Building to be valued, built 1970s floor area 450m2 has demountable partitions, no
air condition, vinyl tiles and floor
Analysis
 The building to be valued has similar services with building C because of age but
seem to be older and recently conditioned.
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THANK YOU.
SIYABONGA.
TINOTENDA.
LALANÓKHUTHULA.