Industrial property is the most demanding segment of commercial real estate to value: a production facility cannot be benchmarked against the building next door the way an apartment or an office can. It calls for different methods and different substance — from the condition of the structures to the economics of the operation they house. The Kanzas company values industrial property across all sectors in Ukraine: from a single workshop to the real estate of major manufacturing complexes. Our team includes RICS- and TEGoVA (REV)-certified valuers; 20+ years of practice.
What we value
Production buildings and plant facilities, hangars and industrial yards, workshops, laboratory and auxiliary buildings, and the structures a plant cannot run without: racks and trestles, tanks, treatment facilities, utility networks, rail sidings. We value individual buildings as well as entire industrial sites — with land and infrastructure.
When an industrial property valuation is needed
- loan security — industrial assets are routinely pledged to lenders;
- acquisition or disposal of a facility or an industrial site;
- fixed asset revaluation and IFRS reporting;
- lease structuring and rent substantiation;
- litigation over enterprise assets;
- insurance of production assets;
- damage assessment, including war-related damage to industrial facilities.
For international investors and lenders with exposure to Ukrainian industrial assets, we deliver reports that meet Ukrainian statutory requirements and stand up to review by international credit committees and auditors.
The specifics: three kinds of depreciation
Most industrial buildings are specialised assets with a thin transaction market, so the cost approach is frequently the backbone of the valuation: replacement cost of a modern equivalent less accumulated depreciation. The professional substance lies in measuring that depreciation correctly across its three components:
- physical — the condition of structures, roofing and utilities;
- functional — how the building matches modern production requirements: bay heights, floor loading, energy efficiency;
- external (economic) — market and environment effects: regional demand, the state of the industry, logistics access.
Where an asset has genuine rental potential — light industrial and warehouse-type premises in viable locations — the income approach through capitalisation of rental income is applied as well. The selection and weighting of approaches is fully reasoned in the report.
Industrial property within an asset complex
An industrial building rarely stands alone: its value is tied to the machinery, the land and the site infrastructure. We value industrial real estate both as a standalone asset and as part of integral property complexes — our track record includes valuations of metallurgical, chemical and machine-building production complexes for syndicated lending involving several banks. A report built to that standard will withstand the most demanding credit committee.
Documents and process
Title documents for buildings and land; technical passports; construction year, refurbishment history and current condition; current lease agreements where the income approach applies; for sites — the master plan and the register of structures and networks. A site inspection is a mandatory step. Fee and deadline depend on the scope and are fixed in the engagement contract.
FAQ
Do Soviet-era industrial buildings retain real value? Yes, adjusted for functional obsolescence: ceiling heights, layouts and energy performance of older facilities often fall short of modern requirements. A rigorous valuation produces an honest market figure — protecting the owner from undervaluation in financing and from unrealistic expectations in a sale.
A facility has been damaged by hostilities — what can be valued? We perform damage assessments: the pre-damage value of the asset and the cost of reinstatement, under the war-damage methodology. See our dedicated war damage valuation page.
How does this differ from valuing the plant as a whole? Valuing a plant means valuing a business or an integral property complex — buildings, machinery, rights and cash flows together. Industrial property valuation addresses the buildings and structures themselves. We perform both and will help you frame the task correctly.
Industrial property does not forgive a template approach — every asset demands attention to its structures, technology and the economics of the specific operation, and that is exactly how we work with each client's task. Your report will be delivered precisely on the agreed date. Contact us by email or messenger.
