Large Space Users (Supermarkets) (Non Domestic Valuation practice notes)

Part of: Non Domestic Valuation practice notes (NI Reval2023)

These Practice Notes were developed for the purpose of revaluing non domestic property in Northern Ireland as part of Reval2023. They were produced primarily as guidance for LPS Valuers to ensure, amongst other things, consistency of approach and practice in rating valuations.


The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class / Subclass / Type for Non-Domestic Revaluation 2023 and subsequent entry in the new Valuation List which becomes effective on 1 April 2023.

The basis of valuation for new entries in the Valuation List, and Rating Revision cases after 1 April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.


This Practice Note refers to property classified as:

Class: Shops, Showrooms, Supermarkets etc.
Sub Class: Large Space User
Type: Supermarket
This practice note is intended to provide guidance on the valuation of large supermarkets and superstores e.g. Tesco, Sainsbury’s, Asda, Lidl. Originally these would have been mainly food-orientated operations, but this is no longer the case with a wide range of goods and services now typically on offer, some sites will include filling stations - for guidance on the valuation of this element see separate LPS Practice Note applying to all filling stations.

Large Space Users (LSU) are classed generally as units over 1750m2. Some stores are smaller than this and still classed as LSU’s, such as B&M Bargains, Iceland etc. An analysis of local evidence should help in deciding how to categorise a particular shop.
Department stores are the subject of a separate LPS Practice Note.

Legislative background

Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.

“Subject to the provisions of this Schedule, for the purposes of this Order the Net Annual Value of a hereditament shall be the rent for which, one year with another, the hereditament might, in its actual state, be reasonably expected to let from year to year, the probable average annual costs of repairs, insurance and other expenses (if any) necessary to maintain the hereditament in its actual state, and all rates, taxes or public charges (if any), being paid by the tenant”.

Valuation approach for 2023

The Comparative method of valuation is to be retained as the approach for this type of hereditament.

Properties should be valued on an overall basis using a price/m2 derived from the analysis of rental of units of a similar location, size and character.
Rental Analysis should be carried out in accordance with The Joint Paper on the Adjustment of Rental Transactions for Non- Domestic Rating Valuation. In line with the Guidance Note, account should be taken of any landlord’s inducements such as capital contributions or rent free periods or of any restrictive covenants in the lease that might affect value.

The overall price/m2 will apply to the main GIA of the main retail floor, typically but not always, the ground floor of the premises. The pricing of upper floor areas, mezzanine floors, basements, and ancillary areas such as external stores, outbuildings and cage stores will require adjustment to reflect appropriate rental levels.

Free parking within the curtilage is reflected within the valuation applied to the supermarket.

Rent and lease questionnaire

For this class of property, the standard Bulk Class Rent and Lease Questionnaire (RALQ) was issued. In addition, direct contact was made with the agents representing the major supermarket chains.


For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.

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