In anticipation of disputes during appeals about what types of appraisals qualify as valid evidence, Dixie enrolled in a USPAP* course offered online by one of the appraisal trade organizations.
The subject is a 30 year old multiple tenant office building, located in a suburban area with a total of 30,000 square feet.
The property owner walks in to the pre-hearing meeting armed with operating statements from the last three years relating to her income producing property.
The property is a 12 unit, 3 story over garage level, brick and steel luxury apartment building built in 1990.
That multiple tenant building with several suites facing a common parking area along the street frontage can be all retail, entirely office, or a combination of Retail/Service/Office.
No… not that group of NFL fans gobbling potato skins in your basement on Sunday… a retail property’s peer group, meaning competition in this context:
Local (first time) developer Buck Bildur appealed his office property, which he contended suffered permanent 50% obsolescence.
To recap from Part 1, functional obsolescence is simply a lack of utility or desirability, caused by a flaw in the structure, materials, or design.
A good, basic Cost Approach course is an excellent early immersion in appraisal theory, particularly regarding types and subcategories of obsolescence.
Here’s a not-so-silent alarm regarding bank branch leases: use those comps at your peril!
Depending on the age and size of the downtown district, buildings over 100 years old probably exist in your town.
Part of Dixie’s job as the Commercial Real Property Analyst in Any Municipality County is review of Appellant evidence, which arrives in many forms including appraisals.
A new, state of the art, very attractive multiple tenant medical office is built in your town, just a block from the largest hospital.
Part 1 outlined basic hotel property types, industry reference sources helpful in understanding lodging operations, and price/chain scale categories identified by the sources.
Existing lodging product is diverse and constantly evolving, so understanding your local hotel market may seem daunting.
Functionality means money… today more than ever! Tenants now seek to get the most employee production from the least amount of space.
Use macro to refine micro… this sounds counterintuitive for sure, but it’s actually a classic method for refining your market surveys.
Dixie tensed just a bit when she recognized that Legal Eagle Esq. was calling.
I’m pretty sure it’s not just me that thinks contingent fee incentives have no place anywhere NEAR public funding. Consider…
Legislative mandate for the assessment of LIHTC properties (Low Income Housing Tax Credit or Section 42s) varies from state to state, but often prevents inclusion of the tax credits in valuation.