Commercial Real Estate Appraisal • 08.08.11
The appraisal profession has developed a series of well-established analytical techniques; the cost approach, income approach and sales comparison approach. The income approach is considered most applicable for investment or income properties. The commercial real estate appraiser then estimates gross potential income, other income, effective gross income, operating expenses, and net operating income. Market value = net operating income/capitalization rate. Commercial real estate appraisers also utilize the sales comparison approach to estimate market value.
An opinion of the market value of a particular property is the primary objective of most appraisal projects. The valuation process includes all of the necessary steps to accomplish these valuation tasks. (more…)



