General-purpose industrial properties in Ontario have the following characteristics:
- uses may include warehousing, light manufacturing or other general industrial uses
- they are multi-purpose buildings that typically include office space
- special purpose features are limited
- they can usually be converted to another use without extensive alterations.
MPAC uses the cost approach to value most general-purpose industrial properties.
This approach determines the assessed value by means of estimating the replacement cost of the buildings and structures, adjusting that cost for any depreciation in the actual property being valued (which includes physical deterioration and obsolescence), then adding the value of the land.
The theory underlying the cost approach is to determine value in exchange by applying the principle of substitution, which means that no rational buyer will pay more for the property than that amount for which the buyer can obtain a property of equal desirability and utility, assuming no undue delay.
Follow the links below for more information about how industrial properties are assessed: