WEIGHTING PRINCIPLES
The Charter of Real Estate Valuation has been developed, with the help of the RICS, a professional body representing all real estate professions, to harmonize the various weighting grids.
The new grid has been developed by representatives of the main fields of the commercial real estate industry, bringing together experts from various professions:
- Users/brands
- Landlords/investors
- Real estate valuation experts
- Property administrators
- Real estate agents
The resulting weighting grid, which can be found in the fifth edition of the Charter of Real Estate Valuation, is applicable from 1 July 2015.
The weighted surface area must represent the relative value of different parts of the leased premises.
The weighting is related to the property. It is calculated based on the usable private areas (indoor floor surface area of the premises, after deduction of the surfaces occupied by walls, partitions, poles, ducts, and hoppers).
Outdoor areas (courtyards, gardens etc.) are weighted if they are for private use.
Regarding the use of the premises, the coefficients must be based on what the property is authorized for as per the administration and contracts, rather than the personal choices made by the tenant.
Average coefficients must be adapted according to:
- Altimetry (slope),
- Volume (height under ceiling),
- Light (windows/partitions),
- Disproportion of surfaces between the building levels,
- Administrative constraints regarding the use of the premises in accordance with regulations (access to emergency exits).
Shop premises
Shop premises
The principles of weighting are as follows for shop premises with a total surface area that does not exceed 600 sqm:
Ground floor: Divided into areas taking into account the importance of its depth:
- Zone 1: In frontage that is 5 meters deep (i.e. between 0 to 5 meters from the window) it is measured to the unit; a corner calculated within an isosceles triangle of 5 m x 5 m is measured at between 1.10 and 1.30 according to the windows
- Zone 2 when 5 meters deep (i.e. between 5 and 10 meters from the window): 0.80;
- Zone 3 when 10 meters deep (i.e. between 10 and 20 meters from the window): 0.40 to 0.60;
- Zone 4 when 20 m+ in depth from the window: i.e. between 0.25 and 0.35 according to the depth and light;
- Various annexes: storeroom, social and technical areas: according to the location: 0.10 to 0.40
- Premises overlooking a courtyard: 0.15 to 0.20
Connected mezzanines
- Sales area: 0.30 to 0.40 according to the quality of the access and the under-ceiling height
First floor
- Connected section:
- - Sales area: 0.30 to 0.40, increased to 0.50 in the 5 meter deep strip if there is a double height window;
- Annexes: 0.20
Second floor
- Connected sales area: 0.20 to 0.30
- Annexes: 0.10 to 0.15
First basement floor
- Connected section: 0.30 to 0.40 according to the quality of the access and the under-ceiling height
- Sales area: 0.30 to 0.40;
- Annexes: 0.15 to 0.25
- Non-connected section: 0.10 to 0.15
Second basement floor
- Connected section: 0.10 to 0.15
- Non-connected section: 0.05
For the linked floors which are contractually designated for purposes similarly to that of an office (intellectual activities without transfer of goods), the residential unit must be valued separately (Art. R 145-4 of the French Code of Commerce):
- Any premises that can only be accessed through the shop are included in the weighting
- Access also from the common parts of the building: Valuation by comparison with rentals of offices in the area with an increase according to the quality of the access from the shop.
Large Commercial Outlets
Large Commercial Outlets
The principles of weighting are as follows for outlets with a total surface area of between 600 sqm and 3,000 sqm:
- On the ground floor:
* 1 The sales area without establishing zones,
* 0.20 to 0.30 for annexes
* 0 to 0.10 for service rooms
On the ground:
*0.30 for indoor sales areas
*0.20 for outdoor sales areas
*0.10 for outdoor storage
First floor and first basement floor
If they are only accessible from the ground floor:
* 0.40 for the sales area without establishing zones, increased to 0.50 if there is natural light
* 0.10 to 0.20 for annexes
* 0 to 0.10 for service rooms
If they enjoy direct access from outside the property (usually a garage) with a window:
* 1 The sales area without establishing zones,
* 0.20 to 0.30 for annexes
If they enjoy direct access from outside the property with no windows:
* 0.70 for the sales area without establishing zones,
* 0.10 to 0.20 for annexes
- On the second floor:
* 0.30 for the sales area without establishing zones,
* 0.10 to 0.20 for annexes
* 0 to 0.10 for service rooms
- On the third floor:
* 0.20 for the sales area without establishing zones,
* 0.10 to 0.20 for annexes
* 0 to 0.10 for service rooms
- On the second basement floor 0.10 to 0.20 according to the quality of connections
Out-of-town Premises and Retail Parks
Out-of-town Premises and Retail Parks
The principles are as follows:
- On the ground floor:
* 1 The sales without establishing zones,
* 0.20 for annexes
- On the first floor:
* 0.50 for the sales without establishing zones,
- In a structural mezzanine:
* 0.40 for the sales without establishing zones,
Shopping Centers
Shopping Centers
The principles of weighting are as follows for shopping centers, shopping arcades and transit zones:
- On the ground floor: 1 without establishing zones, regardless of their usage
- On the first floor:
Direct access from the mall: 1
Access via the shop only: 0.50
- In a structural mezzanine : 0.40
These coefficients are applied to the GLA surface area.