GovWire

Retail warehouses

Valuation Office Agency

August 9
11:33 2024

1.1This section of the Rating Manual covers all retail warehouses whether adapted or converted buildings or purpose-built. It also applies to bulky goods retail warehouses situated on retail parks, and retail warehouses with open A1 planning consent. The definition applies equally to stand-alone solus retail warehouses, as well as those situated on trading estates or shopping parks.

1.2The retail warehouse class includes all non-food retail units and non-distinct food retail units (see paragraph 1.3 below) without restriction to size. Generally their construction identifies a greater visual similarity to warehousing than to that of standard shop units. They can be distinguished from property including department stores and standalone food stores. Retail warehouses typically comprise a single floor, the majority of which is devoted to sales, with some ancillary storage and office use.

1.3Historically, foodstore operators have held a limited presence on retail warehouse parks. The sale of groceries has generally been restricted by conditions attached to A1 planning consents under The Town and Country Planning (Use Classes) Order 1987 (as amended). For a foodstore operator to occupy space on a retail park, planning permission is typically sought for a relaxed non-restrictive A1 planning consent, enabling the sale of groceries. This may be in the form of an application for the lifting of an existing restriction where the unit was formerly occupied by a non-food operator, or in the case of a new development, a non-restrictive A1 use being granted from the outset. The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020, and further amendments to the Town and Country Planning (General Permitted Development) (England) Order 2015, confirm retail warehouses fall within Class E. This enables them to offer a wide range of retail and lifestyle goods which in turn attract a wide range of custom. There may still be restrictions on the types of goods sold, or the amount of space devoted to certain products (e.g., bulky white goods or food).

1.4Where a food operator occupies a distinct unit on or at the periphery of a retail warehouse park, the valuer should consult the Class Co-ordination Lead within the National Valuation Unit (NVU) for further advice and guidance.

1.5Retail warehouses may be sited singly or grouped together, most frequently at fringe or out-of-town locations. The provision of car parking is often extensive and typically shared, as is the case at retail parks.

1.6This section does not deal with Factory Outlet Villages (SCAT 097(S)). These are covered in the Rating Manual: Section 5a: Valuation of all Property Classes Factory Outlet Villages.

1.7This section does not deal with Hypermarkets and Superstores (SCAT 139(S)).These are covered in the Rating Manual: Section 5a: Valuation of all Property Classes Hypermarkets and Superstores.

1.8This section does not deal with Large Shops (SCAT 155(S)). These are covered in the Rating Manual: Section 5a: Valuation of all Property Classes Large Shops.

2. List description and special category code

2.1Special category code (SCAT) 235(G) is to be adopted for retail warehouses. The relevant suffix letter will be G, as retail warehouses are a Generalist Class. Responsibility for ensuring effective co-ordination of this class rests with the Regional Valuation Units (RVUs), with guidance from the NVU and the Retail Class Co-ordination Team (CCT).

2.2The SCAT, Primary Description Code (PDesc Code) and primary description available for retail warehouses are as follows:

  • SCAT Code: 235(G) Retail Warehouses
  • PDesc Code: CS10, using the default primary description of Retail Warehouse and Premises

2.3The default primary description should not be overwritten.

2.4The SCAT, PDesc, or general description of the class is not determinative of the way in which the class is to be valued.

3. Responsible teams

3.1Valuations for retail warehouses are a generalist class.

3.2Requests for Information should be made on forms of return (FOR) as appropriate. FOR VO6003 is sufficient to seek the information needed to undertake valuations, but following up with a VO6005 may be required to seek further and specific particulars as regards fitting out. This includes tenant added first floors (mezzanines) and plant and machinery.

3.3 Where information is missing, due diligence should be undertaken and the details confirmed with the source.

3.4 The VO can request information to be supplied which it considers will assist it in carrying out its statutory functions. This is in accordance with Schedule 9 (5) of the Local Government Finance Act 1988.

4. Co-ordination

4.1 Generally

4.1.1The Retail CCT has high-level responsibility for the co-ordination of this class. The CCT is responsible for examining the approach in undertaking valuations for retail warehouses. The CCT will deliver practice notes outlining the valuation basis for revaluation purposes and provide advice as necessary during the life of rating lists.

4.1.2The framework for co-ordination is shown inthe Rating Manual: Section 5: Valuation Practice Part 1:Co-ordination of Revaluation.

4.2 Tenant Added Supported First Floors (Mezzanines)

4.2.1Guidance in respect of the valuation of tenant added supported first floors in retail warehouses is provided in the Rating Manual: Section 5a: Valuation of All Property Classes Retail Warehouses for the relevant rating list.

4.2.2When compiling rating lists, co-ordination of approach to mezzanine floors is only necessary if, for whatever reasons, the backstop figures proposed in practice note (for the relevant rating list year) are not incorporated into the RVUs Other Addition tables within the Valuation Support Application (VSA) in the Rating Support Application (RSA). For example, where costs in individual instances are used to establish the appropriate addition to make, these also should be co-ordinated with neighbouring Units. Similar action should be taken if rental evidence begins to emerge indicating a relative level of value, expressed as a percentage of ground floor value, as appropriate.

4.2.3Any bespoke costs and rental evidence associated with first floor additions such as mezzanines should be forwarded to the CCT or the Head of the Commercial Valuation Panel within the NVU for further consideration.

4.2.4Once a rating list is published, levels of value in respect of retail warehouses where tenant added floors are in issue are expected to beco

Related Articles

Comments

  1. We don't have any comments for this article yet. Why not join in and start a discussion.

Write a Comment

Your name:
Your email:
Comments:

Post my comment

Recent Comments

Follow Us on Twitter

Share This


Enjoyed this? Why not share it with others if you've found it useful by using one of the tools below: