Malls and shopping centers are not a new concept as they are believed to be. You might be surprised to know that the oldest known existence of a mall dates back to 100 AD.
Appraisals can be current, retrospective, or prospective, and the difference can be important. Current appraisals reflect the day(s) the appraisal was conducted; retrospective appraisals reflect a past date; prospective appraisals are based on a future date.
The Sales Comparison Approach valuation methodology is based on the principle that a given property is compared to other properties of the same characteristics that are already sold.
Generally speaking, there are two classifications of value that can be assigned to a commercial property: market value and utility value. Market value reflects the amount of money a property can be sold for under prevailing conditions; utility value centers on a property’s worth for a particular use.
If you feel like your commercial property is being taxed more than it should, one of the things that you can do is to have it professionally appraised. The value derived can then be compared with what the city has on record to see if you qualify for lower rates.
One of the things that commercial property appraisers can't do is divulge information to anyone but their clients. For example, if a financial institution orders an appraisal done prior to a transaction, the appraiser cannot reveal any results to the owner of the property.
A commercial real estate appraisal can be conducted to help prospective sellers determine acceptable selling prices, or prospective buyers decide on offering prices. It can also help support lease negotiations.
If you and your siblings are heirs to a commercial property owned by your folks, it would be a good idea to have it professionally appraised before you dispose of it. Knowing what it's realistically worth will allow you to decide on a course of action that will be best for everyone involved.
In addition to taxation, property transfer, and other business purposes, commercial real estate appraisals are needed for divorce proceedings when the property in questioned is owned and subject to community property and division of estate laws.
An appraiser of commercial property should be a standing member of your commercial real estate team along with your real estate agent and attorney. The appraiser will provide the key data you need when having to make critical decisions regarding the buying, selling, and leasing of commercial property.
If you want to have your commercial property appraised for the sake of knowing what it's worth, you can opt for a restricted use report. This document is released only to the appraiser's client.
Because of their rigorous training, professional skills and expertise, and the code of ethics to which they must adhere, commercial real estate appraisers are considered expert witnesses, and are permitted to be called to testify in court on certain property issues.
Income capitalization is an appraisal approach commonly used for properties such as office buildings, apartment buildings, and shopping malls which have a strong earning ability. The method involves a rationalization of the income that a property may generate over time.
Do you know that the commercial property in the United States includes nearly 10.5 billion square feet of office space, supports 1.7 million jobs and contributes $234.9 billion to the U.S. Gross Domestic Product?
What is the difference between Appraisal Report and Restricted Appraisal Report? The main difference between them lies in the content and level of information provided. The Restricted Appraisal Report is more concise than the Appraisal Report.
What does real estate analysis take into account? It takes into account four factors: desire, scarcity, utility, and effective purchasing power. Analysis forms an important part of the real estate appraisal process.
Location is everything when it comes to commercial real estate. Commercial estate provides returns in two ways - rent and capital appreciation. Both are heavily dependent on the location.
If you are purchasing a property, your lender will most likely order an appraisal. However, the appraiser’s report may not be made available to you. In order to keep the playing field level, you should have your own appraisal performed in the event of a dispute.Bef
A “fee simple interest” is an appraisal of a commercial property that indicates what the property is worth free and clear, including a valuation of the structure and any accompanying property. Letting the appraiser know what your intentions are can help with determining the correct appraisal.
Because of the rigorous training, professional skills and expertise, and the code of ethics to which they must adhere, commercial real estate appraisers are considered expert witnesses, and are permitted to be called to testify in court on certain property issues.
In addition to taxation, property transfer, and other business purposes, commercial real estate appraisals are needed for divorce proceedings when the property in question is subject to community property and division of estate laws.
A commercial real estate appraisal can also aid in issuance of stock, corporate mergers, or revision of book value. It is also often conducted to help with business dissolutions.
Commercial property appraisals are not the solely for buyers and sellers. If you are looking into leasing a particular property, an appraisal can help you in negotiating terms of the lease and to determine if the rate requested is in line with value.
Because we are an independent agency, having us conduct the appraisal of the commercial property you are interested in or own ensures third party regulatory compliance and provides protection in the event of an audit.
