The business and activity sector for which the building is used require as much consideration as the property’s intrinsic qualities.
A single-use property is one that has been originally designed for only one type of use: residential, commercial, industrial or institutional.
The particularity of this type of property lies in the nature of its value, which is linked to the business operations on site. In some instances, when rental income is dependent upon both the building and the commercial services provided, the value includes that of both the business and the building.
Seniors’ residences and motels are examples of this type of building assessed by HPDG.
When a building has been purpose-built but the operating income is dissociated from the property rental income, its value may be influenced by the business’s reputation and the economic health of the industry. However, this value does not include the business; it pertains only to the property.
Examples of buildings in this category assessed by HPDG include banks, car dealerships, cold storage warehouses, funeral home and sports centre.
- Adapted approach based on whether the building is vacant or in use
- Identification of the property’s strengths and weaknesses
- Analysis of the building’s functionality with regard to market expectations
- Analysis of demand for the property type
- Analysis of the property market in the study area
- Survey and analysis of comparable property transactions
- Comparison and positioning of the property on the market
- Proof of estimated value based on facts and market indicators