Large Industrials
Source: gov.uk (2025-05-16)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

This guidance applies to large industrial properties. As a rule, a size threshold will apply and anything smaller than 20,000m2 should not fall into this category. However, some properties will still fall into this group if they meet certain criteria.

2. List description and special category code

3. Responsible Teams

The valuation of this class of property is the responsibility of the Industrial, Commercial and Crown team within the National Valuation Unit (NVU).

4. Co-ordination

The Combined Industrial Class Co-ordination Team (CCT) has overall responsibility for the co-ordination of this class.

The team are responsible for the approach to and accuracy and consistency of valuations. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

Caseworkers have a responsibility to:
- follow the advice given at all times
- not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team
- seek advice from the co-ordination team before starting any new work
5. Legal framework

There is no specific legal framework for this class.

6. Survey requirements

Large industrials should be measured and valued to Gross Internal Area (GIA) having regard to the definitions contained in the VOA Code of Measuring Practice for Rating Purposes.

7. Survey capture

Rating surveys should be captured on the Rating Support Application (RSA). This type of property should have a significant amount of Plant and Machinery (P&M) on site, this must be recorded on the Non-Bulk Server (NBS).

Plans and surveys should be stored in the appropriate folder within the Electronic Document Records Management (EDRM) system.

8. Valuation approach

Rental and rental comparison approaches should be used to value this class of property with the appropriate adjustments made.

If in doubt, the class co-ordination teams are available to assist with guidance.

9. Valuation support
- Rating Support Application
- Class co-ordination team
- Non-bulk server
Appendix 1 - Inspections

1. Overview

1.1. The VOA standard of measurement for factories, workshops and warehouses is Gross Internal Area (GIA). An explanation of measurement to GIA can be found in the VOA Code of Measuring Practice for Rating (https://assets.publishing.service.gov.uk/media/63bee58fe90e0771bb4260d4/s3p2_The_Code_of_Measuring_Practice.pdf).

1.2. The Code of Measuring Practice e-learning provides useful information on measuring industrials and can be found on the NDR Learning Homepage.

1.3. Industrial properties come in all shapes and sizes, from small workshops to huge manufacturing sites. There are many hazards to consider so you must follow the site rules and use your personal protective equipment.

2. External features

2.1. The Site

A pen picture should be provided of the locality that notes the following:
- Location
- Situation
- Advantages
- Disadvantages
2.2. An example might be:

“The property is situated on an established industrial estate with good access via an existing made-up road also serving other parts of the estate. There are good main road and rail links nearby but parking on site is limited.”

3. Access, loading and unloading facilities

3.1. Ease of access to and within the property should be noted. The height and width of all access doors must be recorded, together with details of construction and the method of operation (e.g. metal roller shutter, electrically operated). The presence of dock levellers should be noted.

3.2. The position of all access doors must be shown on the plan and any problems with access that may affect loading and unloading or general access recorded.

3.3. The height and width of access doors is important not only to the daily operations at the property but also with regard to plant and machinery.

4. Car Parking

4.1. Note the number of allocated car spaces or calculate the approximate size of the overall parking area together with details of the surface finish.

5. Ancillary Storage Land

5.1. Any ancillary storage land should be measured separately and the surface finish noted. Any land suitable for storage, which is unused, should also be recorded. Ask the occupier if the land is used exclusively by them or is shared. If shared make a note of the area and details of the other occupiers.

5.2. It is important to be aware that there are many different approaches to the way in which ancillary land is valued. It is important to be aware of which approach applies to each area. If in doubt please ask your technical advisor.

5.3. Where there are temporary buildings, cabins and/or storage containers (SCN) etc. located on land, then the area of this land must not be deducted. The value of the temporary buildings and/or storage containers and the like, must be added in addition to the land value. Depending on the circumstances, this can be done in the valuation either by a suitable line entry or by using other additions. Other additions is the preferred approach.

6. Age

6.1. It is important to correctly identify the age of any property when carrying out an inspection. The occupier should be able to give you information on the age of the property. If you are unable to obtain this information take photographs to allow identification. The Industrial Age Recognition Guide is a useful tool to help identify the age of your industrial property.

7. Internal features

7.1. Ancillary Accommodation

You should note any ancillary accommodation that may be available e.g. office space, toilets, washrooms, canteens etc.

7.2. Measuring to GIA, ancillary accommodation within the same building may not need to be separately measured if it is of similar quality and value as the main space. Only note the facilities and finish.

7.3. Office space within solid walls or on mezzanine/1st floors, or areas of differing quality will need to be measured.

8. Heights

8.1. The height of an industrial property can have a significant effect upon the value. Eaves height is often used in industrial scales to determine value.

8.2. To record a height note it on the plan at the point it was measured and circle it to distinguish it from the linear measurements.

8.3. The following diagrams show three different types of height in traditional and modern industrial units. The Inspection Checklist only requires you to note the eaves height, which should be measured internally. If the clear height is significantly lower than the eaves height, this might affect the value of the property so should also be recorded.

Diagrams of three different types of height in traditional and modern industrial units. (https://assets.publishing.service.gov.uk/media/63bee837d3bf7f6c27b46c72/RM380_appendix_1_Image1.jpg)

The following diagrams are added for clarity and show the points of measurement for internal eaves height and clear height. It is worth noting that some letting brochures will only state clear height (measured to the underside of the eaves haunch).

Diagrams of the points of measurement for internal eaves height and clear height. (https://assets.publishing.service.gov.uk/media/63bee879e90e0771b49f1cbb/RM380_appendix_1_Image2.jpg)

8.4. Definitions of heights can be found in the VOA Code of measuring practice: definitions for rating purposes. Those for internal eaves and clear height are reproduced below.

8.5. Internal eaves height: the height between the floor surface and the underside of the roof covering, supporting purlins or underlining (whichever is the lower) at the eaves on the internal wall face.

8.6. Clear height: the height between the floor surface and the lowest part of the roof trusses, ceiling beams, roof beams or haunches at the eaves.

8.7. The RICS code of measuring practice has similar definitions with an explanatory diagram which is shown below for reference.

Explanatory diagram for RICS code of measuring practice. (https://assets.publishing.service.gov.uk/media/63bee89ed3bf7f6c2065dc66/RM380_appendix_1_Image3.jpg)

8.8. There may be a number of buildings on the site all with different internal eaves heights in which case separate survey units may be needed to record differing heights.

9. Floor

9.1. Differences in the loading capacity of floors should be recorded. Limitations on the load carrying capacity of the floors (particularly 1st floors and mezzanine storage platforms) should be noted, where available, as this may restrict the full use of the floor.

10. Mezzanine

10.1. A Mezzanine is a “Supported First Floor” (SFF) a floor or series of floors installed independently inside part of the of the main building.

10.2. The construction details, method of access and the clear height above and below the SFF should be recorded, the area below is usually shown as a separate item and deducted from the overall GIA of the ground floor.

10.3. Where possible you should record the load carrying capacity of the Mezzanine floor. This can usually be found on a plate attached to the steel support framework.

11. Bay widths and stanchion grids

11.1. A note should be made of any item, which restricts clear floor space. Columns, piers, pillars, stanchions etc are all included within the GIA and there is no need to take individual measurements of these features. The number, their approximate positions and sizes should be shown on the plan. Where pillars or stanchions form a grid within an area the grid widths should be shown.

12. Lighting

12.1. The provision of natural and artificial lighting must be recorded. For example ‘’Clear Perspex roof panels and suspended strip lights’’.

13. Plant and machinery

13.1. Industrial property, particularly workshops and large factories, are the bulk property where the majority of Plant & Machinery can be found.

Practice note: 2023 - Large Industrials

1. Market appraisal

1.1. This Special Category Code (Scat) covers a wide range of industries. As with other developments between the previous Antecedent Valuation Date (AVD) and the present one of 1 April 2021, the impact of the COVID pandemic on industrial property values was marked by considerable variation between sectors. Given these differences in effect it is not possible to offer a meaningful commentary on such matters for this Scat.

2. Changes from the last practice note

2.1. There have been no changes since the 2017 Practice Note.

3. Ratepayer discussions

3.1. There have been no ratepayer discussions.

4. Valuation scheme

4.1. All industrials larger than 20,000m² have a common 3IND sub location code linked to age-related address matrices. Measurement for large factories is to GIA. The Rentals valuation is the preferred method of valuation. It should be noted that a range of industrial hereditaments of this size (for example distribution warehouses, abattoirs and breweries) are subject to their own Scat-specific guidance – for the avoidance of doubt, in such cases that guidance should be followed instead of this Practice Note.

4.2. Car Parking

4.2.1. Car parking should be “inclusive”, and the reflected table should form part of all access paths.

4.2.2. It is accepted that in certain circumstances it may be appropriate to deduct for ‘lack of adequate parking provision’ and there may be some cases where an addition could be appropriate - but these will be exceptions.

4.3. Land (as an ancillary to an Industrial hereditament)

4.3.1. The Valuation Support Application (VSA) standards definition requires that all land within a hereditament is identified and appropriately captured.

4.3.2. The area of land to be recorded is the total area within the perimeter fence less the building footprint, roads, car parking and unusable areas such as steep banking or narrow perimeter paths. No attempt should be made to imply a standard amount for access/parking by reducing this area by an arbitrary percentage.

4.3.3. Any land that the market would consider to be over and above the norm for the locality should be valued accordingly.

4.4. Eaves Height

4.4.1 The effect on value of an eaves height greater or less than ‘normal’ is essentially a local market interpretation issue.

4.4.2. It is recommended however that the adjustments for height in all large Industrials should be checked in a reconciliation exercise to ensure that the intended result is achieved by the method of adjustment adopted and embedded in the survey data. The following matrix is intended to aid thinking and not to constitute a definitive guide.

4.5. Fire Protection (FPT)

4.5.1. A ‘scheme’ value addition should continue to be applied through the line entry or survey unit adjustments, the FPT factor for this class is 1.05. Where tanks and pumps are present in support of the system, these must be valued as additional plant and machinery in accordance with the VO Cost Guide.

4.5.2. If cost evidence for a specific installation is put in evidence, this may be used as a better indication of value.

4.6.Heating

4.6.1. All large industrials are assumed to be heated and unit rate adopted reflects this.

4.6.2. It is likely that heating will be a tenant’s addition - this should be considered in rental adjustment and analysis.

4.7. Air Conditioning

4.7.1. Where present in office areas it should be valued at a factor of 1.10. Air conditioning (AIR) is distinct from air handling (ducted air circulation) which is reflected in the adopted UAR.

4.7.2 If air conditioning systems are used in connection with a manufacturing operation or trade process they may qualify for exception within class 2 of the Plant and Machinery Regulations. See Jane Berry (VO) v Iceland Foods Ltd RA/61/2012. In cases of doubt refer to National Valuation Unit Industrial Commercial and Crown (NVU ICC) team.

4.7.3. As with sprinkler systems, evidence from actual installation costs may be preferred over the scheme addition for air conditioning.

4.8. Plant and Machinery (P and M)

4.8.1. The common items likely to be found include high voltage electrical supply, standby power, supports and bases for machinery, walkways, bunds and tanks. This list is not exhaustive. These should be captured and valued in accordance with the Plant and Machinery sections of the Rating Manual and the Cost Guide.

4.8.2. The statutory decapitalisation rate must be used.

4.9. Food processing and other clean manufacturing areas

4.9.1. Areas benefitting from ‘white wall’ food processing or clean production fit out must be coded as either accommodation use FPA (Food Processing Area) or LAB (Laboratories). A factor of 1.15 should be used for FPA ground floor areas. The factor to be adopted for clean production will depend on individual specification.

4.9.2. See separate practice note for food processing hereditaments.

4.9.3. Cases of doubt should be referred to NVU ICC team for advice.

Practice note: 2017 - large industrials

1. Market appraisal

The transaction evidence analysed so far is unrevealing, although it is thought that the older stock will continue to lag behind.

2. Changes from the last practice note

No Practice Note (PN) was produced for the 2010 Revaluation.

3. Ratepayer discussions

There have been no discussions with ratepayers.

4. Valuation scheme

All industrials larger than 10,000m2 must have a common sub location code linked to an address matrix.

The sub location code to use is LGIN.

It is appreciated that this has certain implications -

Care must be taken to align values with those produced by size based matrices in use by Units, so as to avoid, as far as possible, illogical steps in value at the margins.

All valuations of large Industrial hereditaments, as defined above should be individually reviewed to ensure consistency and quality.

4.1. Car parking

Car parking should be “inclusive” and the reflected table should form part of all access paths.

It is accepted that in certain circumstances it may be appropriate to deduct for ‘lack of adequate parking provision’ and there may be some cases where an addition could be appropriate - but these will be exceptions.

4.2. Land (as an ancillary to an Industrial hereditament)

The VSA standards definition requires that all land within a hereditament is identified and appropriately captured.

This will ensure that:

No “notional” allowances or deductions are made from the gross area of land actually used for and identified as open storage

4.3. Eaves Height

The effect on value of an eaves height greater or less than ‘normal’ is essentially a local market interpretation issue.

It is recommended however that the adjustments for height in all large Industrials should be checked in a reconciliation exercise to ensure that the intended result is achieved by the method of adjustment adopted and embedded in the survey data. The following matrix is intended to aid thinking and not to constitute a definitive guide.

4.4. Fire Prevention (Sprinklers)

A ‘scheme’ value addition should continue to be applied through the line entry or survey unit adjustments, the factor should be 1.05. Where tanks and pumps are present in support of the system, these must be valued as additional plant and machinery in accordance with the VO Cost Guide.

If cost evidence for a specific installation is put in evidence, this may be used as a better indication of value, once it has been adjusted and decapitalised at the statutory decapitalisation rate.

4.5. Heating

All Large Industrials should be assumed to be “heated” and priced accordingly. This will follow the approach used in the Units.

It is likely that heating will be a tenant’s addition, this will be taken into account in rental adjustment and analysis.

4.6. Air Conditioning

Where this is present in ancillary office areas it should be valued at a factor of 1.10.

If air handling systems serve production areas then they may be used in connection with a manufacturing operation or trade process and qualify for exception within class 2 of the Plant and Machinery Regulations. In cases of doubt refer to NSU Crown and Industrial Unit. Where rateable A/C is present in production areas apply a factor of 1.10.

As with sprinkler systems, evidence from actual installation costs may be preferred over the ‘scheme’ addition for A/C.

See Jane Berry (VO) v Iceland Foods Ltd RA/61/2012

4.7. Plant and Machinery (P&M)

The common items likely to be found include high voltage electrical supply, standby power, supports and bases for machinery, walkways, bunds and tanks. These should be captured and valued in accordance with the Plant and Machinery sections of the Rating Manual and the Cost guide.

The Statutory Decapitalisation Rate must be used.

4.8. Food Processing and other “clean” Manufacturing areas

Areas benefitting from ‘white wall’ food processing or ‘clean’ production fit out must be accommodation use coded as FPA. A factor of 1.15 should be used.

See separate Practice Note for food processing hereditaments.

Cases of doubt should be referred to NVU Industrial and Crown team for advice.