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Waste Management Valuation: Recycling Centre Rent Review

This RICS Red Book recycling centre valuation helped our tenant client negotiate their rent with their landlord.

Brief: We were instructed to provide a current Market Value and Market Rental Value.

Property: Recycling Centre.

Instructed by: Tenant.

recycling centre valuation

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The Property

  • This property was a large Victorian industrial building currently used for recycling metals. 
  • It was a traditional brick and mortar construction, with a tiled valley roof. Access was provided via two roller shutter doors, and timber doors internally.
  • Interally, it had been partitioned to create offices, washrooms and stores, with a main open floor area used for recycling.

The Inspection

  • Our RICS Chartered Valuation Surveyor visited the property to assess its current condition, state of maintenance, and to determine the services and amenities present.
    • They also reviewed energy performance, compliance with fire and equality act regulations, and environmental hazards.
  • Local authority and statutory issues were investigated, including:
    • rateable value for the Valuation Office
    • planning permission history records
    • listing and conservation area status
    • brownfield of green belt status
    • highways information.
  • Our surveyor reviewed the current lease and the provision for rent review.
Metal recycling centre valuation

Our Valuation

Property Considerations
  • Overall, general condition of the property appeared to be consistent with its age and type of construction, with no apparent serious repairs required.
  • We noted an area of structural movement, but concluded that this would not impact on the rental value.
  • In our opinion, the property had a functional and economic life of at least 25 years providing that general maintenance and repair works continue to be undertaken. Therefore, the marketability of the property should be sustainable during this period.
  • We considered the property to be suitable for its current use, and we did not believe that there was any higher alternative use value.
Valuation Considerations
  • We valued the property in line with the 2020 edition of the RICS Valuation – Professional Standards (The Red Book) and the incorporated International Valuation Standards (IVS).
  • We reviewed 11 comparable industrial units within the same city.
    • For each, we considered the rent per annum, leggable area and rent per sq. m. 
    • Deductions or allowances are made for ages and size of accommodation. In this instance a substanital area of property was older than 1960 and therefore of aged stock.
    • Access provisions, modernity and the quantum of floor space.
 
Our valuation concluded a market rental value 20% lower than that proposed by the landlord, allowing the tenant to negotiate on the rental increase.
Waste Management Valuation

Read more about our commercial valuation services here.

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If you would like to discuss a potential project with our consultants or get advice on any aspect of building surveying or engineering, please don’t hesitate to complete our contact form, call us on 0333 202 6386, or contact one of our regional offices.

Looking for residential / home survey services?

Looking for a RICS Level 2 or Level 3 Building Survey or Specific Defect Survey for a privately-owned residential property? Our team of residential surveyors and engineers can help. Visit allcottassociates.co.uk or Get an Instant Quote.

Alternatively, Allcott Commercial provides surveying services for housing associations and other residential property owners.