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Industrial

IDENTIFICATION of MODEL AREA

The Industrial model is an income model that values the majority of properties that are zoned for industrial uses (IA, IA1, IB, IP, IT, RR and WH). Properties with these zoning designations that are considered special purpose in nature or for which there is little or no available market data (rents or sales) are valued outside of this model using the Cost Approach to Value. 

The Industrial model is applied to those properties which are primarily located within the City of Regina’s (the City’s) industrial study areas (5201, 5203, 5204, 5205, 5206, 5207 and 5208). As a result of the market analysis for the 2017 revaluation it was determined that there were five distinct industrial study neighbourhoods located within the City’s municipal boundaries, each with varying types and ages of commercial buildings, land sizes and locational characteristics.  These neighbourhoods are defined on the enclosed map and individually described below.

 

Zoning Descriptions

Properties valued by the Industrial model reflect numerous zoning classifications.  The following are cursory, generalized descriptions only and are not meant to reflect complete details concerning the predominant zonings found within the City’s industrial study area:

  • IA, IA1 – Light Industrial: accommodates the manufacturing of finished products or parts predominantly from previously prepared materials. The IA1 zone is confined to existing industrial properties that are located on the fringes of the Inner City
  • IB, IB1 – Medium Industrial: allows for manufacturing, processing, assembly, distribution, service and repair activities that require outdoor use and storage. This zoning is restricted to locations on the interior of industrial neighbourhoods along collector roadways
  • IC, IC1 – Heavy Industrial: industrial uses which, due to appearance, noise, odour, risk of emission of toxic waste, risk of fire or explosion hazards, etc. are incompatible with commercial, residential and other land uses. Accordingly, new office, business and retail uses within this zone are limited. Development with direct access to local and collector residential streets is not allowed in this zone
  • IP – Prestige Industrial Service: accommodates industrial and related business service uses that incorporate high standards of design, landscaping and open space. The IP zone is found in locations that are visible, have adequate facilities and services and will provide a buffer for adjacent residential and commercial uses
  • IT – Industrial Tuxedo Park: provides for light to medium industrial uses, including commercial and service, on those properties located in Tuxedo park
  • LP – Logistics Park: specialized industrial park that supports transportation and logistics related development and complementary industrial and commercial uses.
  • WH – Dewdney Avenue Warehouse: intent is the preservation of the warehouse character through retention and reuse of existing warehouses. Accommodates a wide range of administrative, service, retail, wholesale and light manufacturing uses
  • RR – Railway Zone: regulate land uses that are directly associated with transportation by railroad, switching and terminal operations

 

Neighbourhood 5201

Neighbourhood 5201 is comprised of three small pockets encompassing all industrial zoned parcels located within the boundaries of North Central Regina. The west most pocket is located on the south side of the CN tracks, west of Albert Street and North of 1st Avenue. The central pocket is situated on the north side of the CN tracks between the laneway east of Albert Street and the laneway immediately west of Scarth Street with 1st Avenue North providing its northern boundary. The east pocket is likewise located north of the CN tracks with Winnipeg Street as its eastern boundary and 5th Avenue North as its northern most boundary. 

The properties situated in this neighbourhood are zoned IA, IA1 (light industrial) and IB (medium industrial) and feature, for the most part, small light industrial properties.

64% of the industrial buildings found in this neighbourhood were constructed in the 1960s and 1970s reflecting an average year built of 1976. Buildings range in size from approximately 600 square feet to 45,500 square feet with an average size of approximately 7,500 square feet.

Improved lot sizes range from approximately 2,000 square feet to 4.40 acres with an average lot size of 21,500 square feet. 

 

Neighbourhood 5203

Neighbourhood 5203 is known as the Ross Industrial Park and is the largest industrial area in the city.  This area encompasses the City’s northeast corner and is roughly bordered by Winnipeg Street to the west, the CN tracks to the southwest, CP tracks to the southeast, the eastern municipal boundary of the city to the east and the northern municipal boundary of the city to the north.

The northern one-third of this neighbourhood is almost entirely occupied by the Consumers’ Co-operative Refineries (CCRL). Imperial Oil, Enbridge Pipelines and several other large oil tank farms are located along the west boundary of this neighbourhood and abut the southern boundary of the CCRL property. The Ross Industrial Park features a broad mixture of zones with the majority of properties (85%) zoned IA (light industrial) or IB (medium industrial). There are 36 IC (heavy industrial), 15 IP (prestige industrial) and 22 properties zoned RR (railway). This neighbourhood comprises a broad range of property sizes, types and uses from light to heavy and prestige industrial.  Property uses include small workshops to large manufacturing operations, chemical processing, mega warehousing (>200,000 square foot buildings), industrial, office, retail and restaurant uses necessary to service the area. 

The majority of the buildings situated in this neighbourhood (52%) were constructed in the 1970s and 1980s with a further 29% being constructed since 2000. The average year built for buildings in this neighbourhood is 1982. Buildings range in size from approximately 110 square feet to 395,000 square feet with an average size of 25,500 square feet.

Improved lot sizes range from approximately 6,000 square feet to 337 acres with an average lot size of eight acres. 

 

Neighbourhood 5204

Neighbourhood 5204 is located immediately adjacent to the southwest corner of the Ross Industrial Park and encompasses all industrial zoned properties that are located along its west, south and eastern borders. Specifically along the east side of Winnipeg Street (west border), between the CP tracks and 7th Avenue (south border), and along the west side of McDonald Street (east border).  These properties are primarily zoned IA and IA1 (light industrial). Three of the 127 properties in this neighbourhood are zoned IB (medium industrial).  

71% of the buildings in this neighbourhood are small industrial buildings which were constructed in the 1950s through 1980s reflecting an average year built of 1969. Buildings in this neighbourhood range in size from approximately 222 square feet to 28,000 square feet with an average size of 4,750 square feet.

Improved lot sizes range from approximately 3,100 square feet to 1.83 acres. The average lot size in this neighbourhood is 12,500 square feet. 

The analysis completed for the 2017 revaluation resulted in a decision to combine the 31 available rents for neighbourhood 5204 with the 201 rents from neighbourhood 5205.

 

Neighbourhood 5205

Neighbourhood 5205 is located in central Regina just north of the downtown core.  This area is referred to as the Old Warehouse District and is bordered on its south side by the CP tracks abutting the north side of Saskatchewan Drive, 4th Avenue to the north, Albert Street to the west and Winnipeg Street to the east.  This area is somewhat transitional in nature with many properties being used for a mix of general commercial uses including retail, office, nightclubs and residential condominiums.

The majority of the properties on this neighbourhood (85%) are zoned IA, IA1 (light industrial) and IB (medium industrial) and feature, for the most part, small light industrial properties with buildings constructed from the 1910s to 2015 with the majority (64%) being built in the 1950s through the 1980s, reflecting an overall average year built of 1960.  The area along Dewdney Avenue abutting the CP rail yards (between Albert and Broad Streets) features larger mill style warehouses constructed in the early 1900s.  This section is zoned WH which as noted earlier, is a zoning designation that is intended to preserve the character of these buildings, many of which are now used for restaurant, nightclub, office and residential uses. Five of the properties in this neighbourhood are zoned RR.

Buildings range in size from approximately 150 square feet to 333,000 square feet with an average size of 18,500 square feet. Improved lot sizes range from approximately 2,200 square feet to 22.50 acres with an average lot size of 45,950 square feet. 

As noted above, Neighbourhoods 5204 and 5205 have been combined for analysis purposes for the current revaluation. The following data supported the decision to combine these two industrial neighbourhoods for market analysis purposes.

 

 

Neighbourhood 5206

Neighbourhood 5206 is sandwiched between Neighbourhoods 5201 and 5205 in North Central Regina.  This area is roughly bordered by McIntyre Street to the west, Winnipeg Street to the east, the CN tracks to the north and 4th Avenue to the south.  As well, this neighbourhood extends north up Winnipeg Street from Ross Avenue (south) to the Ring Road (north). This northerly arm encompasses the former Imperial Oil Refinery site that ceased operations in the late-1970s and is now occupied by the City’s Transit Operations and the local Food Bank, among other uses.

This neighbourhood primarily features a mixture of IA (light industrial) and IB (medium industrial) zoning and is generally developed with medium to large property sizes featuring mostly warehousing and manufacturing uses.  

This neighbourhood has had the majority of its buildings constructed steadily since the 1950s, reflecting an average year built of 1975. Buildings range in size from approximately 400 square feet to 194,000 square feet with an average size of 60,000 square feet.

Improved lot sizes range from approximately 11,000 square feet to 31 acres with an average lot size of 5.15 acres. 

 

Neighbourhood 5207

Neighbourhood 5207 is known as Tuxedo Park and is located in East Central Regina immediately south of Neighbourhoods 5204 and 5205 and the most southerly portion of Neighbourhood 5203.  This area is roughly bordered by Broad Street to the west, Park Street to the east, the CP tracks to the north and 10th Avenue, Arcola Avenue and Victoria Street to the south.

This neighbourhood is predominantly zoned IT (light to medium industrial), features a small pocket (41 properties) of IA1 (light industrial) zoning in its west arm, and three IC (heavy industrial) sites. There is a mixture of small, medium and large property sizes featuring a mixture of industrial and general commercial uses, including retail and office uses.  Although there has been steady construction in this neighbourhood from the 1950s to present day, the majority of the buildings (61%) were constructed in the 1960s, 1970s and 1980s, reflecting an overall average year built for this neighbourhood of 1977.

Buildings range in size from approximately 150 square feet to 170,000 square feet with an average size of 16,100 square feet.

Improved lot sizes range from approximately 1,900 square feet to 12.30 acres. The average lot size in this neighbourhood is 1.47 acres. 

 

Neighbourhood 5208

Neighbourhood 5208 is the City’s newest industrial area and is located on land annexed to the City extending west of the city along the CP tracks.  This area, now referred to as the Global Transportation Hub or GTH, is bordered by West Boundary Road to the west, the Sakimay Reserve to the east, Dewdney Avenue to the north and the CP tracks to the south.

The majority of this neighbourhood is zoned LP (logistics park) and is intended to accommodate inter-modal shipping, trucking and mega-style warehousing on large sites. Loblaws has developed and is operating a one-million+ square foot inter-modal shipping centre in this neighbourhood. Smaller distribution facilities have been developed over the past six years. The southern portion of this neighbourhood is zoned RR (railroad) and houses Canadian Pacific Railway’s inter-modal facility.

Buildings range in size from approximately 100 square feet to 1,054,000 square feet with an average size of 252,000 square feet.

Improved lot sizes range from approximately 1,100 square feet to 298.81 acres. The average lot size in this neighbourhood is 58.8 acres. 

 

MAP

 

EXECUTIVE SUMMARY

Industrial Model

Appraisal Cycle Date – January 1, 2017 to December 31, 2020

Effective Date of Valuation – January 1, 2015

Date of Report – December 8, 2016

 

Rent Model

Description:

Rate per sqft

Base Rent

$8.88

Positive Adjustments to Base Rent:

 

Office space In a Loft Building

$6.36

Restaurant or Retail space in a Loft Building

$3.91

All space in a Retail Building

$1.30

All space in an Office Building

$3.81

Fast Food Restaurant Building

$18.90

Buildings built in 1980 to 1999, inclusive

$0.97

Buildings built in 2000 or newer

$2.83

 

 

Negative Adjustments to Base Rent:

 

Space located in a Basement

-$2.86

Upper Floor space including finished Mezzanine

-$1.79

Buildings Located in Neighbourhood 5201

-$1.20

Buildings Located in Neighbourhoods 5204 and 5205

-$0.60

Buildings built before 1950

-$2.22

Single-tenant Warehouse space >= 65,000 sqft

-$2.53

Other Adjustments:

 

Unheated Warehouse space

-43%

 

SCOPE of DATA and ANALYSIS

Industrial Rent Model

Each year, the City Assessor requests copies of rent rolls for all non-residential properties in the City of Regina.  The data for the development of the mass appraisal net rent model came from the data provided in these returned rent rolls. 

A total of 882 net and effective net rents were analyzed using multiple regression analysis. The rent model is an additive model that predicts rents based on the lease area size, building and space classification, location and effective age of building.  The following table provides a breakdown of these rents along with general statistical measurements.

 

Industrial Rent Statistics

Strata

Count

Mean

Median

Minimum

Maximum

Overall

882

$9.79

$9.52

$1.09

$36.17

Office Lease Space in a Loft Building

19

$10.83

$12.50

$3.24

$18.00

Restaurant or Retail Lease Space in a Loft Building

24

$9.09

$8.14

$4.60

$16.00

Warehouse Lease Space in a Loft Building

3

$2.33

$1.39

$1.09

$4.50

Single Tenant Retail Lease Space

73

$10.57

$10.68

$4.13

$15.00

Single Tenant Office Lease Space

71

$12.82

$11.44

$2.35

$36.17

Freestanding Fast Food Restaurant

3

$29.36

$29.00

$26.00

$33.09

Single Tenant Warehouse Lease Space

365

$9.25

$9.19

$2.08

$22.75

Single Tenant Industrial Flex Lease Space

313

$9.51

$9.50

$3.20

$21.94

Single Tenant Service Repair Lease Space

6

$9.38

$8.75

$4.07

$17.55

Single Tenant Unheated Warehouse Lease Space

5

$5.68

$5.75

$5.00

$6.36

 

Vacancy and Shortfall

Typical 2015 base date vacancy and shortfall adjustments were estimated from the returned rent rolls from property owners. The overall industrial vacancy rate were estimated as follows: 

Rent Type

N

Sum (sqft)

OWNER

170

1,055,810

TENANT

1,109

7,025,273

VACANT

93

403,808

Total

1,372

8,484,891

Vacancy = 403,808/8,484,891 = 0.0476 (4.76%)

 

The estimates for main floor vacancies are as follows: 

Rent Type

N

Sum (sqft)

OWNER

150

946,528

TENANT

982

6,181,932

VACANT

71

382,569

Total

1,203

7,511,029

Vacancy = 382,569/7,511,029 = 0.0509 (5.09%)

 

The upper floor and mezzanine vacancies were determined as follows: 

Rent Type

N

Sum (sqft)

OWNER

12

19,889

TENANT

69

143,859

VACANT

19

20,037

Total

100

183,785

Vacancy = 20,037/183785 = 0.1090 (10.90%)

 

The typical operational costs reported as a ratio to typical net rents for warehouse properties is 41%.  The historic ratio of costs associated with vacant space in comparison to costs associated with occupied space (dark space ratio) was 67%.  The shortfall adjustment is calculated as follows:

Shortfall = (op cost/net rent ratio) x (dark space ratio) x (typical Vacancy)

= 0.41 x 0.67 x 0.0476

= 0.0131 (1.31%)

 

Overall Capitalization Rates and Adjustments

Economic Capitalization Rates were estimated by dividing the predicted base date net operating income (generated from the net rent model) by the adjusted sale prices for all qualified industrial sales.  Sales used in this analysis occurred between January 1, 2011 and December 31, 2014.  These sales have been confirmed as appropriate for sales analysis purposes through a sales verification process which included the mailing of questionnaires to all vendors and purchasers with further follow-up and field inspection of the sold properties, as required.

Sales have been adjusted for non-realty items and other significant factors, when warranted.  Sales were also adjusted to the base date of January 1, 2015.  The indicated time adjustment was approximately 1.3% per month for the first 28 months (January 2011 to April 2013) and no further adjustment for sales occurring after April 2013.

The economic capitalization rate analysis involved 136 sales, detailed in the following table.

ACCOUNT ADDRESS SALE YEAR SALE MONTH  ADJUSTED SALE PRICE   PREDICTED INCOME   ECONOMIC CAP 
10013922 290 HODSMAN ROAD 2012 8                          1,180,931                         80287                     6.80
10013945 315 HODSMAN ROAD 2013 2                          1,026,167                         64,200                     6.26
10013946 325 HODSMAN ROAD 2014 5                            999,998                         62,000                     6.20
10013951 100 N MCDONALD STREET 2012 12                        14,005,179                       432,300                     3.09
10013957 125 HENDERSON DRIVE 2011 3                          1,201,585                         60,700                     5.05
10013976 370 N LONGMAN CRESCENT 2014 5                            574,999                         29,500                     5.13
10013978 350 N LONGMAN CRESCENT 2011 1                            992,093                         61,300                     6.18
10013978 350 N LONGMAN CRESCENT 2012 8                          1,194,481                         61,300                     5.13
10013990 235 N MCDONALD STREET 2014 2                          1,649,997                       113,600                     6.88
10014003 1110 E PETTIGREW AVENUE 2012 11                        13,013,865                       813357                     6.25
10018417 502 QUEBEC STREET 2011 4                            381,754                         14,300                     3.75
10018420 464 QUEBEC STREET 2013 6                            711,999                         31,400                     4.41
10018435 353 QUEBEC STREET 2014 3                            150,000                         17,900                    11.93
10018441 370 QUEBEC STREET 2014 8                            275,000                         13,800                     5.02
10018633 420 HOFFER DRIVE 2012 2                          5,212,196                       458,700                     8.80
10018657 515 MCDONALD STREET 2011 7                            708,258                         41,500                     5.86
10018662 435 MCDONALD STREET 2011 11                          1,382,556                         60,300                     4.36
10018674 580 PARK STREET 2013 10                          8,949,984                       502,500                     5.61
10018682 264 E 1ST AVENUE 2012 3                          1,685,532                         99,700                     5.92
10018688 909 E PETTIGREW AVENUE 2012 10                          2,323,242                       123,100                     5.30
10018689 1105 E PETTIGREW AVENUE 2011 9                          1,821,351                       115,200                     6.32
10018690 1117 E PETTIGREW AVENUE 2011 6                          4,384,509                       355,200                     8.10
10018693 1405 E PETTIGREW AVENUE 2011 7                          2,728,104                       153,800                     5.64
10018705 380 HENDERSON DRIVE 2013 4                          1,579,997                         69,700                     4.41
10018717 445 MAXWELL CRESCENT 2011 2                          2,042,667                         88,900                     4.35
10018718 435 MAXWELL CRESCENT 2011 4                          3,067,669                       174,500                     5.69
10018733 205 N LEONARD STREET 2013 6                          2,794,995                       154,300                     5.52
10018736 705 HENDERSON DRIVE 2012 7                          7,469,747                       374,000                     5.01
10018744 380 MAXWELL CRESCENT 2011 7                          1,606,696                         66,300                     4.13
10018745 1150 E WEAVER STREET 2011 9                          1,246,187                         62,700                     5.03
10018747 1130 E WEAVER STREET 2011 12                            983,649                         41,500                     4.22
10018752 470 MAXWELL CRESCENT 2013 9                          1,149,998                         94,783                     8.24
10021967 645 ANGUS STREET 2013 11                            945,998                         50,300                     5.32
10021970 620 ANGUS STREET 2012 11                            777,632                         43,100                     5.54
10022100 2350 2ND AVENUE 2013 5                          2,599,995                       220,285                     8.47
10022138 805 TORONTO STREET 2011 10                          1,110,330                         78,700                     7.09
10022390 805 WINNIPEG STREET 2012 6                          1,251,660                         65,100                     5.20
10022453 310 E 4TH AVENUE 2012 3                          2,483,941                       209,800                     8.45
10022463 942 PARK STREET 2012 2                          2,186,726                       139,500                     6.38
10022516 1750 E MACRAE DRIVE 2014 1                            849,998                         35,200                     4.14
10022528 1507 E ROSS AVENUE 2012 3                          2,353,830                       165,500                     7.03
10026892 1835 5TH AVENUE 2013 11                          1,249,998                       111,300                     8.90
10026894 1140 ROSE STREET 2013 6                            364,999                         16,800                     4.60
10026927 1430 MCINTYRE STREET 2012 12                          1,579,531                         73,100                     4.63
10026930 1374 MCINTYRE STREET 2012 9                            333,861                         11,600                     3.47
10026936 1324 MCINTYRE STREET 2011 2                            349,772                         26,816                     7.67
10026940 1333 MCINTYRE STREET 2012 10                            226,921                         20,800                     9.17
10026960 1428 LORNE STREET 2012 10                            302,562                         15,500                     5.12
10026998 1366 CORNWALL STREET 2013 5                            384,999                         15,800                     4.10
10027014 1355 CORNWALL STREET 2012 11                            789,366                         34,000                     4.31
10027017 2139 8TH AVENUE 2013 1                            453,745                         16,000                     3.53
10027056 1431 SCARTH STREET 2013 4                            389,999                         15,700                     4.03
10027119 1255 CORNWALL STREET 2012 2                            539,193                         31,000                     5.75
10027154 1401 ST JOHN STREET 2013 6                          1,049,998                         77,500                     7.38
10027197 1361 HALIFAX STREET 2012 5                            461,066                         50,200                    10.89
10027200 1625 8TH AVENUE 2013 1                          1,507,286                         76,000                     5.04
10027246 1516 6TH AVENUE 2011 4                            327,218                         29,300                     8.95
10027247 1136 ST JOHN STREET 2011 11                            871,882                         34,200                     3.92
10027266 1162 OSLER STREET 2013 2                          2,869,572                       192,700                     6.72
10027267 1148 OSLER STREET 2012 8                          1,219,741                         79,100                     6.48
10027272 215 7TH AVENUE 2013 4                            741,999                         42,800                     5.77
10027290 555 7TH AVENUE 2013 11                            159,499                           7,400                     4.64
10027298 1335 BRODER STREET 2013 5                            374,999                         23,900                     6.37
10027321 1326 ATKINSON STREET 2014 6                            250,000                         25,100                    10.04
10027327 1349 WALLACE STREET 2012 5                            219,006                         11,400                     5.21
10027343 1337 WINNIPEG STREET 2013 3                            229,612                         12,700                     5.53
10027348 980 DEWDNEY AVENUE 2013 4                          1,899,997                         79,700                     4.19
10027354 728 DEWDNEY AVENUE 2014 9                            416,999                         16,800                     4.03
10027919 1025 WINNIPEG STREET 2012 11                            357,988                         10,500                     2.93
10027920 1037 WINNIPEG STREET 2011 5                            483,115                         29,700                     6.15
10027925 135 6TH AVENUE 2013 5                          1,628,247                       103,600                     6.36
10027980 1420 FLEURY STREET 2013 11                          2,669,995                       183,400                     6.87
10027982 1410 FLEURY STREET 2014 11                          1,999,996                         80,100                     4.01
10027987 580 E DEWDNEY AVENUE 2013 8                          1,465,997                         77,500                     5.29
10032066 2825 SASKATCHEWAN DRIVE 2012 6                          1,678,362                       117,700                     7.01
10032088 2901 SASKATCHEWAN DRIVE 2012 9                            990,633                         44,100                     4.45
10032114 1873 CAMERON STREET 2014 5                            275,000                         41,200                    14.98
10032130 3426 SASKATCHEWAN DRIVE 2012 5                            945,185                         82,600                     8.74
10033263 1500 WINNIPEG STREET 2013 3                            769,879                         37,300                     4.84
10033272 1160 9TH AVENUE 2013 10                            349,999                         11,600                     3.31
10033335 1600 TORONTO STREET 2013 12                            304,999                         18,600                     6.10
10033463 1575 ELLIOTT STREET 2013 2                          2,154,951                       282,300                    13.10
10033464 1539 ELLIOTT STREET 2014 9                            770,999                         57,100                     7.41
10033800 1601 MCARA STREET 2012 3                          1,052,718                         83,800                     7.96
10033807 500 E 10TH AVENUE 2014 5                          3,599,984                       392,000                    10.89
10033814 715 E DEWDNEY AVENUE 2011 9                          1,310,094                       109,700                     8.37
10033823 305 E DEWDNEY AVENUE 2011 5                          2,113,081                       135,800                     6.43
10033828 101 DEWDNEY AVENUE 2013 3                          1,012,998                         62,400                     6.16
10033847 1920 MCARA STREET 2012 8                          1,006,840                         46,900                     4.66
10033876 1818 MCARA STREET 2011 12                            368,869                         20,736                     5.62
10033878 1774 MCARA STREET 2011 8                            550,272                         41,900                     7.61
10033885 1705 MCARA STREET 2013 5                            474,999                         27,600                     5.81
10033897 1842 MACKAY STREET 2014 12                            824,999                         47,200                     5.72
10033920 1740 FRANCIS STREET 2012 3                            650,556                         44,200                     6.79
10033928 535 E 12TH AVENUE 2012 10                            994,130                         62,300                     6.27
10059440 127 HODSMAN ROAD 2013 6                            215,000                           9,100                     4.23
10059441 129 HODSMAN ROAD 2013 7                            180,000                           8,900                     4.94
10059451 332 HODSMAN ROAD 2014 6                            266,865                         11,600                     4.35
10059725 1135 E WEAVER STREET 2011 12                            555,762                         33,000                     5.94
10065679 1347 WINNIPEG STREET 2013 9                            280,000                         13,826                     4.94
10070876 1168 WINNIPEG STREET 2012 10                            270,144                         19,000                     7.03
10070876 1168 WINNIPEG STREET 2012 11                            373,349                         19,000                     5.09
10070877 1170 WINNIPEG STREET 2013 6                            528,999                         33,900                     6.41
10070879 1180 WINNIPEG STREET 2014 2                            499,999                         25,500                     5.10
10086976 1301 OSLER STREET 2013 10                          1,549,997                         95,100                     6.14
10091137 1330 OSLER STREET 2013 10                          1,149,998                         63,800                     5.55
10091223 1201 LORNE STREET 2013 7                          1,399,998                       105,000                     7.50
10093003 390 N LONGMAN CRESCENT 2012 8                          1,718,725                         91,200                     5.31
10093276 310 E 6TH AVENUE 2012 5                          1,757,814                       132,900                     7.56
10093276 310 E 6TH AVENUE 2014 5                          2,099,996                       132,900                     6.33
10113530 505 PARK STREET 2013 9                          2,589,995                       166,900                     6.44
10113531 535 PARK STREET 2014 1                          3,699,993                       320,200                     8.65
10120535 602 DEWDNEY AVENUE 2013 4                            138,000                         14,200                    10.29
10120676 1800 GARNET STREET 2012 12                            579,162                         27,200                     4.70
10133583 1355 LORNE STREET 2014 10                            459,999                         17,300                     3.76
10136588 722 DEWDNEY AVENUE 2014 2                            417,499                         16,800                     4.02
10147651 2102 E TURVEY ROAD 2012 10                            594,318                         26,300                     4.43
10167385 20 2206 DEWDNEY AVENUE 2012 7                            207,805                         10,300                     4.96
10167387 22 2206 DEWDNEY AVENUE 2012 7                            247,119                           9,700                     3.93
10213813 1660 REYNOLDS STREET 2013 5                            848,998                         63,200                     7.44
10226517 202 SOLOMON DRIVE 2014 2                          3,499,994                       149,500                     4.27
10256290 1 1801 E TURVEY ROAD 2012 2                            461,309                         28,700                     6.22
10256291 2 1801 E TURVEY ROAD 2012 2                            461,309                         28,400                     6.16
10256292 3 1801 E TURVEY ROAD 2012 8                            426,909                         28,400                     6.65
10256294 5 1801 E TURVEY ROAD 2012 10                            416,022                         28,400                     6.83
10256295 6 1801 E TURVEY ROAD 2013 2                            399,179                         28,400                     7.11
10256296 7 1801 E TURVEY ROAD 2013 6                            388,999                         28,700                     7.38
10259150 730 DEWDNEY AVENUE 2014 8                            416,999                         16,800                     4.03
10271843 412 DEWDNEY AVENUE 2014 1                            639,999                         29,000                     4.53
10271844 410 DEWDNEY AVENUE 2012 5                            393,382                         16,500                     4.19
10271845 408 DEWDNEY AVENUE 2012 10                            414,423                         16,300                     3.93
10271846 406 DEWDNEY AVENUE 2013 12                            374,999                         16,300                     4.35
10271847 404 DEWDNEY AVENUE 2013 12                            321,599                         16,500                     5.13
10271848 402 DEWDNEY AVENUE 2013 10                            324,999                         16,500                     5.08
10271849 414 DEWDNEY AVENUE 2014 10                            689,999                         32,300                     4.68
10271850 400 DEWDNEY AVENUE 2014 9                            409,999                         18,400                     4.49

 

The reconciliation process for determining the industrial economic capitalization rates applied to each property involved the use of Multiple Regression Analysis. The variables that were determined to affect the economic capitalization rate were the Industrial Light Manufacturing building type, effective age, site coverage ratio, and total building area <> 10,000 square feet, and condominium title, which was supported by a consultation process with individuals active in the Regina real estate market.  Industry recognized published capitalization rate data were also reviewed.  The economic capitalization rates are as follows:

 

Overall Capitalization Rates 

Description

Rate

Base Cap Rate

6.908

Condo

-1.184

Site Coverage Adjustment, Less than 30%, to minimum 9%

-.055

Area Adjustment, from 10,000, per 1000sqft, to 50,000

.040

Industrial Light Manufacturing Type Adjustment

-1.022

 

Adjustments Outside the Model

Extra Land

Extra Land is the difference between a property’s actual parcel size, and the maximum parcel size that would be required to accommodate the existing improvement.

Site coverage in the Industrial model ranges from 6% to 88%.  The median site coverage is 30%.  When site coverage is less than the median value, the Capitalization Rate for the building is adjusted according to the results of the regressed Capitalization Rate model, to a minimum of 9% site coverage. 

When the site coverage ratio is less than 9%, then:

Extra Land Value = (Lot Size-(building foot print / .09))/Lot Size*Land Assessment

 

MODEL TESTING

In mass appraisal, the most effective means of evaluating the accuracy of assessed values is a ratio study.  A ratio study compares the assessed values produced by the valuation models to arm’s length sale transactions in the marketplace.

The legislated statistical requirement affecting the assessment of commercial properties in Saskatchewan is for the median ratio of a city-wide assessment-to-sales study to be within the range of 0.95 to 1.05.

The median assessment-to-sales ratio and Coefficient of Dispersion for this Industrial valuation model is provided below:

 

Assessment to Sales Summary Results

Number of Sales

136

Median Assessment to Sale Price Ratio (ASR)

0.931

Coefficient of Dispersion (COD)

22.6% 


Other Adjustments

Extra Land

Extra Land is the difference between a property’s actual parcel size, and the maximum parcel size that would be required to accommodate the existing improvement.

Site coverage in the Industrial model ranges from 6% to 88%.  The median site coverage is 30%.  When site coverage is less than the median value, the Capitalization Rate for the building is adjusted according to the results of the regressed Capitalization Rate model, to a minimum of 9%. 

When the site coverage ratio is less than 9%, then:

Extra Land Value = ((9 – site coverage ratio) / 9) x Land Value