Valrus specialists conducted a forensic examination in the framework of a case challenging the cadastral value of a land plot with a commercial and office building located on it with an extremely specific location.
The property is located in Moscow on Europa Square in the immediate vicinity of the Kievsky railway station and the European shopping center.
At first glance, this local position gives the impression of an extremely successful one in terms of cross-country traffic, which greatly affects the value of commercial real estate. On the one hand, the valuated object is located next to the Kiev railway station, which should provide a large attendance due to the constant flow of passengers, on the other hand, one of the largest shopping centers in Moscow is located nearby, which also provides a large influx of customers at the first approach.
However, during a detailed study of the local location and a personal inspection, our employees found that such a finding of the valuated real estate object was rather a negative factor. The entire passenger flow of the Kievsky railway station either does not reach this object, or is directed in the opposite direction from it – towards the entrances to the subway. The flow of visitors to the European shopping center is also directed in the opposite direction from the valuated object and is actually its direct and much more successful competitor.
Also, the object in question does not have a separate passage for vehicles and Parking.
Thus, the main task of Valrus specialists was to prove the importance of the local location factor and substantiate the availability of significant discounts to rental rates compared to the nearest retail and office facilities. As part of the forensic examination and giving explanations at the court session, we proved that the use of rental rates for nearby retail facilities (in particular, the European shopping and entertainment center) without taking into account the local location factor will lead to a significant distortion and overestimation of the final market value of the object.
The court agreed with the arguments of our experts, and the cadastral value of the disputed objects was established on the basis of a forensic examination prepared by the company. The final decrease in the cadastral value according to the results of the examination amounted to more than 35%.