Humber Real Estate - Course 4, Module 7 Preparing to Sell Industrial Properties |34 questions and answers.docx

- Ceiling heights - Heating systems - Doors - Electrical systems - Lighting fixtures - Bay sizes What parts of an industrial property's interior does a salesperson need to thoroughly inspect to ensure they comply with municipal bylaws? - Potential for expansion of the existing building - Potential for demolition and decommissioning for redevelopment - Adequacy, condition and location of the exterior signage - Any deterioration of the building observed What exterior parts of an industrial building will need to be looked at during a salesperson's visual inspection? The area where trucks are parked and used for loading and unloading. What is a Shipping Apron? Durable, concrete A shipping apron should be paved with more ____________ material than the rest of the parking area, such as ____________, or some other structural reinforcement to withstand the heavy loads being parked there. Turning radius A _______________________ area should be large enough to allow trucks and trailers to enter and exit the site conveniently. - Truck configuration - Trailer size - Location of adjacent objects that obstruct the inner turning radius What variables does a truck turning radius depend on? An electrical device that changes voltage through the transferal of electricity by means of electromagnetic induction, commonly associated with an industrial property. The main service would involve a three-phase incoming service with a step-down transformer. A three-phase incoming service is required for larger motors usual to industrial needs. What is a transformer? - Pole transformer service (resembling a large pot) - Located on a pole near the street and is generally used to provide relatively small size services (under 600 amps) to industrial, retail, office and investment properties? - Mat transformer service - Larger cabinet style unit located on the ground, often directly adjacent to the building - Pad transformer service - Involves several mat transformers located on a pad) What are the 3 types of transformers you will encounter as a salesperson? Hanging objects, beams, joists or trusses Ceiling height is the distance from the floor to the inside overhead upper surface of the room. This measurement will be higher than any _________________________________, unless there is a suspended ceiling. Ask the seller to provide building blueprints or inspection reports. How can you determine the ceiling height and span of an industrial building? False. The seller should contact a third party professional and inquire about the cost to obtain such reports. True or false? If a seller does not have source documents regarding water, electrical, etc. the salesperson should recommend that the seller contact the municipality to obtain inspection reports and other documentation for the property. - The value of the land as though vacant - The value of the land as improved Highest and best use is analyzed from what 2 perspectives? "As though vacant" The __________________ approach establishes how the land can be best used, not necessarily how it is currently used. "As improved" The __________________ approach provides an indication of value based on the current structure, but with regard to the highest and best use for that structure. - Do the improvements conform to the zoning, or are they legal non-conforming? - Do the improvements conform to the other properties in the area? - Do the improvements add value to the land; that is, would a typical purchaser pay for the buildings over and above what they would pay for the land? - Would a buyer want to alter the improvements in the land in any way to conform to the other buildings in the area to achieve the value of the highest and best use? What questions should a salesperson ask to decide whether the current use is the highest and best use? The actual number of years that have passed since a structure was built. What is the actual age (also known as the chronological age) of a building defined as? The estimated age in years based on the amount of care and attention (e.g. renovation and modernization) a building has received. What is the effective age of a building? - Single floor with clear height typically between 4.88 metres (16 ft) and 9.75 metres (32 feet) or higher if required - Poured concrete slab-on-grade floor of 15.24 cm (6 inches) or greater thickness (depending on need) - Steel frame roof using open web steel joists (OWSJ) - Built-up roof with stone ballast - Steel strip windows - Metal doors - Overhead doors for loading docks What are the basic requirements of an industrial property? - Used by large discount retailers and just-in-time delivery systems (e.g. Amazon) - Highly technological industrial facilities - Ceiling heights exceeding 30 ft - Features both horizontal and vertical product storage, ingenious racking systems and reinforced floors - Electronic equipment (wide-band radio technology and bar code readers) - All product movement on the floor is immediately updated in warehouse inventory files What are 'High-Cube Distribution Centres'? A controlled development designed and zoned to accommodate specific types of industry and includes features such as public utilities, streets, railroad sidings, water facilities and sewage facilities. What is an industrial park? To provide areas for industrial development that do not detract from adjacent residential areas or other uses. They also serve as a buffer between heavy industrial activities and business or residential districts. What is the purpose of an industrial park? Site plan control agreements Municipalities typically require ____________________________ in relation to individual properties within an industrial park. Clear span or column spacing Bay Depth is also known as what? The distance between posts or vertical supporting beams in a building. What is Column Spacing? A relative term that refers to industrial buildings with an abundance of clear height or vertical cubic space. What is High Cube / High Bay? The distance from the floor to the bottom edge of a truss used to support the ceiling or roof of a building. If there are hanging objects, beams or joists below the truss, the clear height will be lower than the truss height. What is Truss Height? Ask the seller for source documents. Note: If source documents aren't available, recommend that the seller hire third party professionals to measure the building. How can you verify the measurements of an industrial building? Linear dimensions Gross exterior dimensions or __________________ of each wall are used to calculate the area of the building. These measurements help calculate the square foot/square metre area of the building. A building that is on-site, other than the main structure. What is an Accessory Building? Physical: Location in relation to services and amenities Economic: Stability of uses, property values, vacancies and sale price trends Political: Legislative impact, such as taxation, local improvements, and official plan restrictions (also referred to as legal/governmental factors) Social: Population growth or decline, crime rates and age groupings An appraiser views most neighbourhoods in terms of 4 characteristics: - Access - Parking facilities - Compatibility of uses - Growth trends - Vacancy factors - Competitive position - Services (e.g. rail, utilities) - Labour pool - Access to raw materials How does an appraiser analyze an industrial neighbourhood?