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ITZA
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. Having taken the correct dimensions, the layout or configuration of the premises is designated in zones.
Each zone is usually 20' (6.096 m) depth. I emphasise 'usually' because, although 20' (6.096 m) depth is common, 30' (9.14 m) depth is also used in some places; also zoning for Rateable Value may be Zone A 15'0" (4.57 m), Zone B 25'0" (7.62 m) and Zone C 20' (6.096 m).
The zone at the front of a shop is generally considered the most valuable: the frontage of a shop is an important feature.
The first zone is known as Zone A, the next Zone B, the next Zone C and so on. Generally, zoning ends at Zone D or E, with any other zones known as 'Remainder'.
Zones that are less valuable than Zone A are related to Zone A generally by halving-back from Zone A so, for example, Zone B is A/2, Zone C, A/4, Zone D A/8. Even so, depending upon other factors, the fraction can be A/3, A/5, A/6, etc.
Expressing the area in terms of Zone A enables the rent to be analysed, (devalued).
For example, assuming shop X is 18' 0” (5.49 m) wide by 55’0” (16.76 m) depth and let at £25,000 a year, what is the rent of shop Y whose width is 16'6" (5.03 m) and depth 67' (20.4 m).
[From now on, to avoid visual 'clutter' I shall use imperial areas only. Many shop surveyors/valuers still use imperial (feet, inches and sqft) rather than metric (m, mm and sqm)]
For shop X, multiplying 18' * 55' = 990 sqft, then dividing into £25,000 = £25.25 sqft
Shop Y's area is 1105.5 sqft so, on an overall basis, its rent is £27,917. However, that doesn't allow for Shop Y being narrower and deeper than Shop X.
To answer the question what is the rent of shop Y, first calculate the Zone A rent of Shop X, using the zoning method:
Shop X
Zone A ... 18' * 20' = 360 sqft
Zone B ... 18' * 20' = 360 sqft
Zone C ... 18' * 15' = 270 sqft
Total .......................... 990 sqft
Next, I express all zones in terms of Zone A ("ITZA")
Namely:
Zone A ... 360/1 = 360
Zone B ... 360/2 = 180
Zone C ... 270/4 = 67.5
ITZA ............... 607.50 sqft
Then divide the rent £25,000 by ITZA = Zone A £41.15
For shop Y, the zoned areas are:
Zone A ... 16’6” * 20’ = 330 sqft
Zone B ... 16’6” * 20’ = 330 sqft
Zone C ... 16’6” * 20’ = 330 sqft
Zone D ... 16’6” x 7’ = 115.5 sqft
Total ..................... 1105.50 sqft
To calculate the rent of Shop Y, I can use either one of two long ways, or just the short way ITZA
One long way:
Zone A ... 330/1 = 330 * £41.15 ..... = £13,580.25
Zone B ... 330/2 = 165 * £41.15 ..... = £6,790.12
Zone C ... 330/4 = 82.5 * £41.15 .... = £3,395.06
Zone D ... 115.5/8 = 14.44 * £41.15 ..= £ 594.14
Total Rent .......................................................... = £24,359.57
Another long way:
Zone A .... 330 * £41.15 ............... = £13,580.25
Zone B .... 330 * £41.15/2 ............. = £6,790.12
Zone C .... 330 * £41.15/4 ............. = £3,395.06
Zone D .... 115.5 * £41.15/8 .......... = £594.14
Total Rent .......................................................... = £24,359.57
The short ITZA way:
Zone A .... 330/1 ..... = 330
Zone B .... 330/2 ..... = 165
Zone C .... 330/4 ..... = 82.50
Zone D ....115.5/8 ... = 14.44
ITZA ..................... = 591.9375 sqft
Multiply 591.9375 * £41.15 Total Rent ...................... = £24,359.57
(Any slight differences are in rounding up)
In conclusion, compared with smaller Shop X, the overall rent for larger Shop Y is £27,916.67 but, because Shop Y is narrower and deeper, Y’s rent is £3557.10 lower.
-------------------
Generally, a lower rent would be attributed to space not on the ground floor. Also, sometimes, space is valued overall, other times as a fraction of Zone A, for example A/10 for basement, or first floor sales, A/15 for storage, A/12 for kitchen, A/20 for remote ancillary, etc. External space in outbuildings and garages is generally valued overall, but upper floors (not self-contained) at a fraction of Zone A.
In measuring a shop, the preference generally is net internal area (NIA). However, GIA (gross internal area) may be used for large space premises, such as stores and supermarkets, retail warehouses and factory outlets. (GEA) gross external area is also used, and for valuations for building insurance. Measurement is to structural walls, usually ignoring de-mountable or non-structural partitions, and for NIA, space taken by nibs, piers, columns, chimney breasts and any structural impediments is excluded. Changes or variations in floor levels can mean part of a zone is valued differently to the other part(s). Similarly, masking, where the line of sight or view from the frontage is interrupted structurally, such as with an L-shape.
-------------------
Please note: although simple application of a stated Zone A rent to the subject premises would, assuming valuation areas agreed, indicate the likely rent, valuation is an art and not an exact science. Rental devaluation can often be a matter of opinion, even between surveyors involved with the actual transaction, and, when the evidence is considered by other surveyors for use involving other matters, it is not uncommon for a different interpretation to be applied.
'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. Having taken the correct dimensions, the layout or configuration of the premises is designated in zones.
Each zone is usually 20' (6.096 m) depth. I emphasise 'usually' because, although 20' (6.096 m) depth is common, 30' (9.14 m) depth is also used in some places; also zoning for Rateable Value may be Zone A 15'0" (4.57 m), Zone B 25'0" (7.62 m) and Zone C 20' (6.096 m).
The zone at the front of a shop is generally considered the most valuable: the frontage of a shop is an important feature.
The first zone is known as Zone A, the next Zone B, the next Zone C and so on. Generally, zoning ends at Zone D or E, with any other zones known as 'Remainder'.
Zones that are less valuable than Zone A are related to Zone A generally by halving-back from Zone A so, for example, Zone B is A/2, Zone C, A/4, Zone D A/8. Even so, depending upon other factors, the fraction can be A/3, A/5, A/6, etc.
Expressing the area in terms of Zone A enables the rent to be analysed, (devalued).
For example, assuming shop X is 18' 0” (5.49 m) wide by 55’0” (16.76 m) depth and let at £25,000 a year, what is the rent of shop Y whose width is 16'6" (5.03 m) and depth 67' (20.4 m).
[From now on, to avoid visual 'clutter' I shall use imperial areas only. Many shop surveyors/valuers still use imperial (feet, inches and sqft) rather than metric (m, mm and sqm)]
For shop X, multiplying 18' * 55' = 990 sqft, then dividing into £25,000 = £25.25 sqft
Shop Y's area is 1105.5 sqft so, on an overall basis, its rent is £27,917. However, that doesn't allow for Shop Y being narrower and deeper than Shop X.
To answer the question what is the rent of shop Y, first calculate the Zone A rent of Shop X, using the zoning method:
Shop X
Zone A ... 18' * 20' = 360 sqft
Zone B ... 18' * 20' = 360 sqft
Zone C ... 18' * 15' = 270 sqft
Total .......................... 990 sqft
Next, I express all zones in terms of Zone A ("ITZA")
Namely:
Zone A ... 360/1 = 360
Zone B ... 360/2 = 180
Zone C ... 270/4 = 67.5
ITZA ............... 607.50 sqft
Then divide the rent £25,000 by ITZA = Zone A £41.15
For shop Y, the zoned areas are:
Zone A ... 16’6” * 20’ = 330 sqft
Zone B ... 16’6” * 20’ = 330 sqft
Zone C ... 16’6” * 20’ = 330 sqft
Zone D ... 16’6” x 7’ = 115.5 sqft
Total ..................... 1105.50 sqft
To calculate the rent of Shop Y, I can use either one of two long ways, or just the short way ITZA
One long way:
Zone A ... 330/1 = 330 * £41.15 ..... = £13,580.25
Zone B ... 330/2 = 165 * £41.15 ..... = £6,790.12
Zone C ... 330/4 = 82.5 * £41.15 .... = £3,395.06
Zone D ... 115.5/8 = 14.44 * £41.15 ..= £ 594.14
Total Rent .......................................................... = £24,359.57
Another long way:
Zone A .... 330 * £41.15 ............... = £13,580.25
Zone B .... 330 * £41.15/2 ............. = £6,790.12
Zone C .... 330 * £41.15/4 ............. = £3,395.06
Zone D .... 115.5 * £41.15/8 .......... = £594.14
Total Rent .......................................................... = £24,359.57
The short ITZA way:
Zone A .... 330/1 ..... = 330
Zone B .... 330/2 ..... = 165
Zone C .... 330/4 ..... = 82.50
Zone D ....115.5/8 ... = 14.44
ITZA ..................... = 591.9375 sqft
Multiply 591.9375 * £41.15 Total Rent ...................... = £24,359.57
(Any slight differences are in rounding up)
In conclusion, compared with smaller Shop X, the overall rent for larger Shop Y is £27,916.67 but, because Shop Y is narrower and deeper, Y’s rent is £3557.10 lower.
-------------------
Generally, a lower rent would be attributed to space not on the ground floor. Also, sometimes, space is valued overall, other times as a fraction of Zone A, for example A/10 for basement, or first floor sales, A/15 for storage, A/12 for kitchen, A/20 for remote ancillary, etc. External space in outbuildings and garages is generally valued overall, but upper floors (not self-contained) at a fraction of Zone A.
In measuring a shop, the preference generally is net internal area (NIA). However, GIA (gross internal area) may be used for large space premises, such as stores and supermarkets, retail warehouses and factory outlets. (GEA) gross external area is also used, and for valuations for building insurance. Measurement is to structural walls, usually ignoring de-mountable or non-structural partitions, and for NIA, space taken by nibs, piers, columns, chimney breasts and any structural impediments is excluded. Changes or variations in floor levels can mean part of a zone is valued differently to the other part(s). Similarly, masking, where the line of sight or view from the frontage is interrupted structurally, such as with an L-shape.
-------------------
Please note: although simple application of a stated Zone A rent to the subject premises would, assuming valuation areas agreed, indicate the likely rent, valuation is an art and not an exact science. Rental devaluation can often be a matter of opinion, even between surveyors involved with the actual transaction, and, when the evidence is considered by other surveyors for use involving other matters, it is not uncommon for a different interpretation to be applied.