Reinstatement Valuation Costs - Retail

focus_mad

Hi folks

I was wondering if you guys knew where I could reinstatement valuation costs for retail and commercial properties..

Thanks in advance.

Victor

Such properties vary hugely and it would likely be worth your while to engage someone to do a formal valuation. Note that if you are a tenant, your management company / landlord may do this for you. As to whether they insure the property, that will vary.

Use a quantity surveyor for buildings. Depending on the property, you are looking at a few hundred euros minimum to do this. However, if it is a repeat valuation a few years down the line, you are probably looking at half price as the work should be simpler. If it is a recently built building that they worked on, most QSs would likely do it for free.

Some loss adjusters will do contents / stock valuations for you, but you might have a good ide a of this yourself.

Do not under value anything as it could lead to the average clause being invoked.

focus_mad

Victor wrote: »

Such properties vary hugely and it would likely be worth your while to engage someone to do a formal valuation. Note that if you are a tenant, your management company / landlord may do this for you. As to whether they insure the property, that will vary.

Use a quantity surveyor for buildings. Depending on the property, you are looking at a few hundred euros minimum to do this. However, if it is a repeat valuation a few years down the line, you are probably looking at half price as the work should be simpler. If it is a recently built building that they worked on, most QSs would likely do it for free.

Some loss adjusters will do contents / stock valuations for you, but you might have a good ide a of this yourself.

Do not under value anything as it could lead to the average clause being invoked.

Victor thanks for the reply.

I'm a Building Surveyor myself and have done quite a few reinstatement valuations for residential properties for insurance purposes as opposed to selling valuations but haven't done one for a retail property in a long time.

I have all the reports/formats however need to get a base m2 costing. I thought I would spread it out and ask here as well as on Linkedin.

Victor

It will all be very dependent on standards and shop layouts - the smaller the shop, suddenly what goes on the walls becomes much more expensive than what goes on the floor and €/m2 becomes meaningless.

I used to do a fair amount of shop fitting work - fit-out only can be anywhere from €500-5,000/m2 and more for kiosks. Structure I imagine would mostly be in the €500-1,500/m2 category, but as you appreciate a retail warehouse or supermarket can't be compared to a corner shop or high street shops.

Exactly who owns what can also be important, e.g. who owns the shop front, air conditioning, sanitary facilities, etc. In one shopping centre the main tenant owned their part of the building, the result was that 80% of the management company's valuation was the surface only car park (unlikely to burn, flood, suffer structural failure, etc.) and the rest was the common space and the small shop units.

focus_mad

Victor wrote: »

It will all be very dependent on standards and shop layouts - the smaller the shop, suddenly what goes on the walls becomes much more expensive than what goes on the floor and €/m2 becomes meaningless.

I used to do a fair amount of shop fitting work - fit-out only can be anywhere from €500-5,000/m2 and more for kiosks. Structure I imagine would mostly be in the €500-1,500/m2 category, but as you appreciate a retail warehouse or supermarket can't be compared to a corner shop or high street shops.

Exactly who owns what can also be important, e.g. who owns the shop front, air conditioning, sanitary facilities, etc. In one shopping centre the main tenant owned their part of the building, the result was that 80% of the management company's valuation was the surface only car park (unlikely to burn, flood, suffer structural failure, etc.) and the rest was the common space and the small shop units.

Yeah I was looking at the Bruce Shaw Handbook for guidelines but will have a word with a Chartered B.S with experience doing this and see what has been used in the past.

I have a visual inspection either tomorrow or Thursday and will have a better understanding of the property.