‘Winners and losers’ expected from non-domestic property revaluation.
The Department of Finance and Personnel’s rating revaluation of non-domestic properties will produce ‘winners and losers’ according to the Belfast Office of CB Richard Ellis. The revaluation exercise is designed to reflect the changes in non-domestic property values since 2003 but is not aimed at raising new revenues. However it is expected to have a large impact on commercial property classes that have witnessed greatest change and property occupiers are being urged to prepare for the latest revaluation.
David Wright, Associate Director, CB Richard Ellis said:
“While this is a revenue neutral exercise there will undoubtedly be winners and losers as certain property classes have become significantly more valuable since the last revaluation. One area in the local market that could see the greatest change is retail warehousing as these properties have seen large-scale growth in the past few years”.
Transactions within the market that take place over the next 6 months will provide the basis for the 2010 rating list as the date of valuation is 1st April 2008. CBRE is advising property occupiers, particularly large corporate occupiers and retail businesses, of the need to prepare for the revaluation.
David Wright said:
“With rent and rates forming business’s second biggest overhead after wages, occupiers will obviously want to ensure that they are not being exposed to an unfair level of higher rateable values. Occupiers can help avoid excessive assessments by receiving advice from professionals with in-depth knowledge of the local market”.
“During the previous revaluation in 2003 we worked successfully with a number of businesses including PricewaterhouseCoopers LLP, Nortel, and John David Group Plc to ensure fair valuations.”