Valrus specialists again took part in the valuation of shopping malls in Moscow, which are typical facilities for us. This time, we received a case challenging the cadastral value of two shopping centers of a microdistrict level.
The uniqueness of the facilities is the location directly near the metro exits, and, accordingly, high customer traffic and high rental rates.
The shopping centers are located near the Oktyabrskoye Pole metro station in the north-west of Moscow. In addition to the objects themselves, the land plots on which they were built were valued.
The problem discovered during the investigation of the court case was that shopping malls, despite their high commercial attractiveness, were rated even below the average market value for similar facilities within the framework of the valuation report. Thus, the market value in the valuation report ranges from 65,000 to 70,000 rubles per square meter, which is more than 50% lower than the cadastral value. The same situation has arisen for land plots. They were valued as part of the valuation report below the cadastral value by 50%.
In the course of the administrative case, a forensic examination was appointed, which also significantly underestimated the attractiveness of the facilities when calculating the income approach, and did not correctly determine the composition of the leasable areas. At the same time, a comparative approach was applied, where medium-quality retail facilities were used as analogues. The expert preferred the comparative approach, despite the fact that the comparative approach is not able to take into account such parameters as:
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average number of visitors;
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vacancy rate;
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terms of lease agreements (as a rule, the existing shopping center is transferred to a new owner with tenants);
- the potential profitability of the object.
In most cases, even if there are similar parameters of objects, primarily profitability, the comparative approach can only give a range of market value, use it as a verification method, in the primary examination it is assigned more weight than the profitable one.
The Valrus expert applied a income approach as the main one. At the same time, a search was conducted for proposals for renting premises in the valued facilities, on the basis of which both the level of rental rates and the composition of leasable areas were established (with the help of schemes attached to the ads). As a result of calculations, the market value of shopping centers was determined at more than 250,000 rubles per 1 sq. m, which is significantly higher than the cadastral value of real estate.
During the valuation, the court's requirements for determining a reliable market value were taken into consideration, and a methodology was developed that corresponds to the economic characteristics of the real estate objects being valued. As a result, the valuation was confirmed by the court and directly by the plaintiff, who withdrew his claim as part of the trial.
The termination of the trial due to the cancellation of the claim does not exempt the participants in the administrative case from paying the costs of the conducted forensic examination. The court issues a separate ruling on the recovery of court costs from the plaintiff in favor of the expert organization. It is important for expert organizations to remember that it is possible to apply for recovery of expenses only within 3 months after the completion of the case. Do not mistake it for the possibility of collecting already "overdue" expenses for 3 years from the debtor.