David, a local property developer, was considering the purchase of a standalone industrial building. He was referred to us by the selling agent, because no recent rentable area surveys could be found. David wanted to confirm the advertised area of the building and engaged us to do so. A Rentable Area Plan was recommended, with the task being to measure the total area of the building so the valuation could be confirmed.
Our approach was to produce an accurate Rentable Area Plan using Method 4, for industrial sites and warehouses, in accordance with the Property Council of New Zealand's guidelines. We were on site the day after job confirmation, and once we completed our site safety induction, access was granted.
Our team got started with first taking measurements from the outside of the building, before moving inside to determine any areas to be excluded from area calculations. Realserve's approach to a site where there are hazards such as trucks and forklifts always takes careful planning to ensure that survey works are carried out safely, and with minimal disruption to the occupants.
Following completion of the Rentable Area Plan, it was discovered that there was a shortfall in area of 46m² below that of the area advertised. This shortfall cost the seller around $80K in final negotiations, but left our client very happy. It was discovered that the quoted area was based on an old set of construction plans and not the most current set of drawings. This taught both the client & agent a valuable lesson, and both continue to use our services, confident they are getting the most accurate result possible.