Practice Notes

Approved for Publication 01.03.2005

COMMERCIAL PROPERTIES COMMITTEE

Practice Note 28

REVALUATION 2005

Valuation of Computer Centres

1.0 INTRODUCTION

This practice note covers purpose built computer centres and those converted from another use. It is also relevant to computer suites that form part of larger property, such as office headquarters.

2.0 BASIS OF VALUATION

This category of subject should be valued by application of the comparative principle. This follows the approach established by the Valuation Office Agency, which is based upon analysis of rented centres.

3.0 TYPICAL PROPERTY

The physical appearance of computer (or data) centres varies considerably, however accommodation typically comprises computer hall(s), plant rooms, offices, stores, toilets and other ancillaries. The building will normally be integrated with advanced services including backed-up and un-interruptible power supplies, environmental control, fire systems and high security features. In addition the computer hall itself may incorporate other specialist features such as load bearing raised floor, air-lock doors, fire curtains and other construction details relevant to its functional and security requirements.

The building fabric will reflect the services it is integrated with; features may include reinforced floors, compartmentalised layout, ventilation/exhaust ducting, additional water supply/drainage systems, lighting protection and possibly reinforced structural members.

A dedicated computer centre will have few staff, generally engineers and security personnel responsible for maintaining the integrity of the facility.

4.0 VALUATION

4.1 Building

The valuation of the building will be related to local office value levels, subject to the following qualifications. Office space and similar should be valued at an appropriate office rate per square metre. The computer hall, or suite, should normally be valued at a rate per square metre between 75% and 100% of the office level, depending on specifications, quality of finish and rateability of air handling plant. Plant rooms and other industrial type accommodation should normally be valued at 50% of the adopted office level. If required, modification of this element is acceptable in order to give a result that is within reasonable proximity to local industrial levels of value.

In dealing with centres converted from standard industrial buildings, there may be some where the degree of specialisation/adaptation of the building fabric is more modest than would be found at a purpose built facility. Individual treatment by way of modification to the computer hall rate is acceptable.

It is important to remember the basic methodology is underpinned by rented computer centres and therefore the approach, in particular the value attached to the computer hall itself, is not solely related to the physical appearance of the building or standard of finish compared with local offices. It also seeks to reflect the particular value levels attributable to this specialist class of property.

4.2 Plant & Machinery

It is unlikely that local office rates will reflect advanced building services such as those found at computer centres. Consequently, plant and machinery will be a major component of the valuation and care should be exercised to ensure that this is not understated. Rateable items are identified by reference to the Valuation for Rating (Plant & Machinery) (Scotland) Regulations 2000.

Wherever possible actual costs should be obtained and adjusted as required. Reference can also be made to the Rating Cost Guide however this is not exhaustive and may not include some specialist or more advanced items. In the interests of consistency it is recommended that costs be de-capitalised using the same percentage rate as that prescribed for Contractor's valuations.

5.0 MEASUREMENT PRACTICE

It is recommended that all areas be calculated on a Net Internal basis (NIA), with the qualification that plant rooms and similar are INCLUDED as noted above.

Reval 2005 CPC Practice Note 28