Specification and location now separate logistics assets more sharply than at any point in the past decade. Valuation practice has had to keep pace.
Industrial property in Malaysia has become an institutional asset class. Modern distribution facilities are now valued with the analytical rigour long applied to offices, and the gap between institutional-grade and legacy stock has widened accordingly.
Specification drives the income assumption
- Clear internal height and racking efficiency
- Floor loading capacity and slab condition
- Dock levellers, canopy provision and yard depth
- Power supply capacity and sprinkler classification
- Land-to-building ratio and expansion capacity
Two facilities of similar floor area can command materially different rents where these attributes differ. Comparable evidence must therefore be adjusted for specification, not only for location and size.
Tenure and land use
Land use category, tenure and any conversion or premium exposure affect both value and marketability. These matters should be verified rather than assumed, and their treatment should appear in the report.
Built-to-suit and covenant strength
Where an asset is let to a single occupier on a long lease, value is closely tied to the covenant and the lease terms. The analysis should consider what the asset would let for on re-letting to the general market, and what capital expenditure that would require.
Information on this website is general in nature and does not constitute a formal valuation, appraisal or professional advice. A valuation conclusion arises only from a professional engagement with an agreed scope of work.