This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
I normally don’t post more than one article per week. This week I have a bonus article for my appraisal colleagues who are interested in becoming expert appraisal witnesses in eminent domain cases. This article was written by Leslie Fields, the Executive Director, Owner’s Counsel of America.
When developing an opinion of the marketvalue of a property, what appraisers are really measuring is how much depreciation a property has suffered from, and more specifically how much depreciation the improvements on the land have depreciated. Hopefully, you found this article to be interesting. Depreciation!
If a home needs major repairs, clearly this can have a negative impact on marketvalue. Therefore, if a home is in need of some major repairs, it may be worth having an appraisal completed to see if the marketvalue of the home is lower than the assessed value. The assessor may not be aware of these repairs.
The client should be clear that the assessment is performed at a point in time and that the marketvalue opinion is – as of a specific date – the effective date. Since COVID, one key area that takes on heightened importance is our regional and local market analysis section’s current environment. Moderate credit tenants – 6.5%
Having worked with many different lending institutions completing new construction and planned renovation assignments, think of this article as a “best practices” reference to be shared with new lenders, credit analyst team members and borrowers navigating the commercial appraisal process for the first time.
This article will explore the specific challenges, processes, and nuances of commercial appraisals, providing a guide to help you navigate this important aspect of the commercial real estate landscape. Factors like location, tenant mix, lease rates, and building amenities play a critical role in determining their value.
Though, keep in mind that commercial real estate doesn’t always sell at marketvalue. Retail space for sale differs from other types of commercial real estate because owners are trying to either (1) attract customers, or (2) attract tenants that plan on attracting customers. CRE Property #2: Retail/Restaurant Storefront.
In this article, we’ll look at eleven types of risk in commercial real estate investment. . Similarly, leased property includes a risk that tenants will not be able to make timely lease payments as expected. So, planning for 2% inflation each year would be a reasonable estimate in this market. Credit/Default Risk.
The standard appraisal report’s definition of marketvalue refers to “typical buyers,” most of whom would become acutely aware of such odors right at the door, and when it’s significant will either walk away or discount their offering price. I had a tenant whose child had a hamster or gerbil.
The short answer: A commercial real estate appraisal is a calculated assessment of value for any type of commercial property. If you’re reading this article, you will likely need a commercial real estate appraisal for property being sold, mortgaged, taxed, insured, or developed.
In this article we’ll take a closer look at effective gross income and clear up any confusion. A simple back of the envelope proforma for a single tenant property might look like this: In this example the vacancy & credit loss is all shown on one line. We then add in any reimbursement income from tenants.
One of the unique challenges of commercial real estate investment is that markets, types of property , return expectations, and physical environments are in a constant state of change. Modern tenants require high speed internet connections, strong cellular reception, advanced security features, and modern audio/video capabilities.
The yield on cost is a commonly used metric when evaluating real estate development and value-add projects. In this article we’ll take a closer look at the yield on cost in real estate. Yield on Cost Calculation: Value Add Example. The cap rate is the ratio of net operating income to the property’s marketvalue.
Cap rates: To find this, you divide the NOI by the current marketvalue. Location and demographics: Your value will go up if you’re in a high-traffic area with good visibility. These spaces also offer a sense of community, as they frequently feature luxury amenities such as caffeinated beverages and snacks for the tenants. .
In this article, we are going to introduce the key concepts in lease vs. own analysis and apply them with a case study. Property owners benefit from increases in the asset’s value over time and from the tax benefits of depreciation. Capital Expenditures : The tenant is responsible for $15,000 in CapEx in year 0.
If these articles helped you get one non-lender appraisal, it is worth the subscription price! ADUs can be rented out to tenants, thereby adding to the supply of housing in a community. Google Business Profiles are free and easy to set up. Get on the top of Internet searches. I tell you how to set one up.
Last month, a post on Accountable titled “ Corporate Landlords See Profits Soar Amid Rent Hikes and Fees ” found that the six largest publicly-traded apartment companies reported large profits earlier this year, and many of these same landlords are named in pending litigation for their alleged use of proprietary algorithms to raise rents on tenants.
Spend hours writing volumes of supporting documentation to justify the marketvalue of a property you already decided on when you pulled into the driveway. What is happening in your market? You may need to call agents to see the amount of concessions offered and make an adjustment based on its effect on marketvalue.
Purpose: While residential real estate is designed primarily for housing, CRE is about tenant businesses or organizations that pay rent (or other fees) to operate in the space. Steady Cash Flow : Long-term leases and multiple tenants can provide predictable income streams. Here are some compelling reasons why CRE stands out.
We organize all of the trending information in your field so you don't have to. Join 9,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content