Industrial property valuations are based on different criteria than commercial property. IPV’s accredited valuers cover the following property types across the greater Sydney metropolitan region.
What We Value
Warehouses and distribution centres
Manufacturing and production facilities
Logistics and transport depots
Torrens Title and strata-titled industrial property
Owner-occupied and vacant industrial sites
Tenanted or Vacant, We Value It Right
A tenanted site with a documented lease supports the income capitalisation approach, where net rental income is divided by a market-derived capitalisation rate.
Meanwhile, a vacant or owner-occupied site has no rental income to capitalise, so IPV relies on a capitalised potential rental income or direct comparison against recent industrial sales, adjusted for the key drivers listed above.
For purpose-built or specialised facilities with few comparable sales, the cost approach, land value plus depreciated construction cost, is the solution. Most reports draw on more than one method, and they are cross-checked against each other.
Who We Support
A range of professionals rely on independent valuation of industrial property including:
01
Property owners and investors
Valuations support owners and investors ahead of a sale or purchase, to negotiate from an evidence-based figure.
02
Developers
Industrial property valuations provide a clear basis for assessing site feasibility before a rezoning or redevelopment.
03
Property lawyers and solicitors
Industrial valuations provide independent evidence for litigation, compulsory acquisition, property disputes, and other legal matters.
04
Accountants and SMSF trustees
Accurate valuations of industrial assets support capital gains tax calculations, financial reporting, and SMSF compliance requirements.
05
Landlords and tenants
Industrial property valuations are essential when negotiating a rent review, and owners in dispute, to settle disagreements over a property’s worth.
Why IPV?
- API or AVI-accredited valuers, with ongoing professional development
- Reports built to withstand scrutiny from courts and financial institutions
- Direct experience across Sydney’s industrial corridors
- A single valuer handles your engagement from enquiry through to the finished report
- Expert witness experience in litigation and compulsory acquisition matters
Reach out to our experienced team today to schedule your valuation of industrial property.
What Are the Key Drivers of Industrial Property Value?
Industrial property valuations come down to a specific set of physical and locational factors that differ from office or retail property.
- Clearance height. Low-clearance and high-clearance factories suit different tenants, so ceiling height affects both the demand and rental potential.
- Office-to-warehouse ratio. The proportion of office space against warehouse floor area affects a site’s flexibility and its appeal to different industrial users.
- Building-to-land ratio. The proportion of the site that’s built versus open affects storage capacity and expansion potential.
- Hard stand area. Yard space for vehicle parking or container storage directly affects value for logistics and transport tenants.
- Access and egress. How vehicles move in and out of the site, including loading dock configuration, affects operations and buyer interest.
- Proximity to freeways and port terminals. Sites closer to major transport corridors and freight infrastructure command stronger demand.
- Exposure to passing traffic. Visibility from a main road matters for industrial tenants with a showroom or trade counter component.
What’s Inside Your Industrial Property Valuation Report?
All industrial property valuations lay out how IPV reached its figure.
- Property summary. Address, valuation date, and the assessed market value.
- Site description. Land size, building footprint, and the physical drivers covered above, including clearance height and hard stand area.
- Zoning and planning controls. How current zoning affects permitted use and any redevelopment upside.
- Tenancy details. Lease terms, rental income, and expiry dates, where the site carries a tenant.
- Methodology. Which approach or combination of approaches IPV applied, and the reasoning behind it.
- Comparable evidence. The sales IPV benchmarked the site against.
- Limitations. Any factors, such as unverified third-party information, that could affect the figure’s accuracy.
- Credentials. The valuer’s name, qualifications, and API or AVI accreditation.
Know the true value of your industrial real estate assets. Enquire today to speak to one of our industrial valuers from Independent Property Valuations.
Frequently Asked Questions
How to choose a reliable industrial property valuer near me?
Look for direct experience in the specific precinct rather than general commercial experience. Vacancy rates and buyer profiles vary considerably across Sydney’s industrial corridors.
Which software tools help with industrial property valuation reports?
IPV draws on an in-house property database and industry-standard market research platforms for valuation of industrial property to compare sales and leasing data.
Does an industrial valuation change for a site being considered for redevelopment?
Yes. A site with rezoning or redevelopment potential is valued with that upside factored in, potentially placing more weight on land value than the existing improvements.
What's the difference between a commercial and an industrial property valuations?
Commercial valuations centre on tenancy mix and location within a retail or office precinct. Industrial valuations centre on what the site physically allows a tenant to do, which is why clearance height and access carry more weight.
What information do I need to provide?
IPV generally requests details such as lease agreements, floor plans, outgoings such as council and water rates, land tax, insurance and security costs, and other recent rate notices where available. A valuer will confirm exactly what’s needed once the enquiry type is known.