SERVICE STATION - VALUATION EXAMPLE



Service station 5 years old. 6 bowsers on large site with medium size workshop/retail.


Land value: 500m2 * 2000/m2 1 000 000
Tarmac (expected life 10 years):
Replacement cost new (RCN): 80 000
 Less depreciation:.(40 000) 40 000
Ground improvements:
Landscaping/fencing etc (RCN): 20 000
 Less depreciation: (14 000) 6 000
Other improvements
Canopy (RCN): 80 000
 Less depreciation:(50 000) 30 000
Underground tanks/plumbing (RCN):
200 000
 
Less depreciation: (120 000)


80 000
Workshop (RCN): 100m2 @ 600 = 60 000
 Less depreciation:(15 000) 45 000
Shop/restrooms (RCN): 150m2 @ 700= 105 000
 Less depreciation:(26 300) 78 700
Market value:
1 279 700
say 1 280 000


NB: Bowsers, hydraulic hoist and other plant and equipment have been excluded as not being fixtures and therefore, part of the real estate.