A rental approach is the basis for shop valuation.
Following the analysis of available and relevant rental information pertinent to the valuation date of 1 April 2015 (2017 Rating List), the Valuation Office will place properties of similar value in valuation schemes.
When looking at the valuation approach in respect of shops the traditional method of valuation is ‘zoning’. Zoning is a commonly adapted valuation approach whereby the most valuable part of the retail premises is acknowledged to be to the front of the property (Zone A) and the areas to the rear become less valuable.
Not all shops are zoned, for example some restaurants, larger supermarket type retail premises and department stores are valued on an overall basis. The presence of air conditioning can influence the value of the property.