What does Itza mean in valuation?

What does Itza mean in valuation?

ITZA is surveyor-abbreviation meaning ‘area in terms of Zone A’. Totalling the areas of each zone and expressing the total in terms of Zone A is the quick way to analyse (devalue) a rent. Alternatively, there are two other approaches to value each zone, both of which, presupposing consistency, produce the same result.

What does Itza stand for?

ITZA is surveyor-abbreviation meaning ‘area in terms of Zone A’. ‘Zoning’ is a measuring methodology for comparing shops of different sizes and layouts.

How is Itza calculated?

The established valuation convention is to halve back from Zone A, with Zones B onwards assessed ‘in terms of Zone A’ (ITZA): Zone B =A/2; Zone C=A/4. Zone D, which is usually the remainder of the retail area after Zone C, is assessed as A/8 and any ancillary space will probably be valued as A/10.

What is the zoning method of valuation?

Zoning is a method of apportioning the value of the floor area within a standard retail unit. It is founded on the principle that the floor area at the front of the ground floor of a unit is worth more than that at the rear.

What is Retail Zone A and B?

Zoning retail properties Your retail premises is divided into a number of zones: each of these zones normally has a depth of 6.1 metres (20 feet) the first zone, nearest the display window is zone A. the next 6.1 metre zone is Zone B and the next Zone C.

What is mirror zoning?

In these cases is it customary but not mandatory to adopt what is called ‘mirror’ zoning whereby the measurements taken and the areas calculated for each zone (A, B, C etc) replicate the front Zone A so that at each of the left hand and right hand edges of the shop you measure back 20 foot (if it is a 20 foot zone) and …

How is retail space calculated?

To measure commercial square footage for a rectangular space, multiply the length of the room in feet by its width. For example, a room that is 12 feet long by 12 feet wide is 144 square feet.

How do you value a return frontage?

1) Corner/return frontage – Normally add up to 10% to the total sales area value to reflect the estimated worth of the particular situation. It is unlikely that a corner situation will be worth more where there is no return frontage.

How do you value retail premises?

Income capitalisation – This method calculates the rough value of a property by looking at the revenue of the businesses occupying it. First, take the property’s net annual rental income and divide it by your estimate of the building value, based on sales of similar ones in the local area.

What is zoning in property?

Zoning is a planning control tool for regulating the built environment and creating functional real estate markets. Zoning has a relatively short history as a tool for land-use planning. It determines the location, size, and use of buildings and decides the density of city blocks (City of New York 2015a).

What is a Zone B property?

The designation “B1 zone” generally refers to a section of a municipal zoning ordinance that places restrictions on how real estate may be used in a particular area within the municipality.

What is considered during rental method of valuation?

The rental method of valuation is the type of valuation mostly used for fixing up the taxes. In this method, the net rental income is calculated by deducting all the expenses from the gross rent and the obtained net rent is then multiplied with the year’s purchase to obtain the value of the property.

What is the meaning of Itza?

ITZA : Areas : Measurement. ITZA is surveyor-abbreviation meaning ‘area in terms of Zone A’. ‘Zoning’ is a measuring methodology for comparing shops of different sizes and layouts. Measuring methodology can vary. It doesn’t matter what methodology is used provided all the evidence is analysed on the same basis.

How do you calculate the area of an Itza?

So you stick with Zone A of 600 sq.ft., but then halve this to 300 sq.ft for an adjusted Zone B area. Also, halve again to 150 for Zone C area. Finally add all these together to establish an ITZA area of 1,050 sq.ft, which is lower then the original 1,800 literal area.

How does Itza affect my rent?

Whatever is agreed, it’s often as a final percentage uplift or decrease on the rent after the main ITZA calculation.

What is fundamental analysis used for in valuation?

Fundamental analysis is often employed in valuation, although several other methods may be employed such as the capital asset pricing model ( CAPM) or the dividend discount model ( DDM ). Valuation is a quantitative process of determining the fair value of an asset or a firm.