Cambridge Office - Level 3

Question 1

Describe the valuation instruction of the office building in Cambridge?

Answer 1

Instruction: Quarterly valuation on behalf of client.

Purpose: Accounts purposes (IFRS 13) - VPGA 1 / UK VPGA 1

Asset: One Station Station Square

Extent of Valuation: Inspection

Question 2

Describe the property?

Answer 2

Modern 6-storey Grade A office located close to Cambridge train station.

High-quality specification:

• LED lighting
• 4 high speed lifts
• Fully accessible raised flooring
• Suspended ceilings
• End of trip facilities
• BREEAM Excellent
• Water conversation measures.

Question 3

What was the building area?

Answer 3

130,000 sq ft Net Lettable Area

Question 4

How did the building present?

Answer 4

Open plan floor plates

Close to full occupancy apart from one unit.

Question 5

What void period did you assume?

Answer 5

Reduced void period from 6 months to 3 months.

Positively reflected perceived interest in the unit.

Question 6

When was the building built?

Answer 6

2017

Question 7

How did you address the vacant space in your valuation?

Answer 7

Despite being under offer - I needed to ensure I applied market rent and assumptions that were based on completed deals in line with hierarchy of evidence.

Question 8

Did you apply apply a different capitalisation rate to the vacant vs occupied areas?

Answer 8

No - risk reflected in void period assumed.

If built into the capitalisation rate I would have