Traditional Methods Typically, appraisers use one or more of three recognized methods to value commercial real estate. These include: The Cost Approach The Sales Comparison Approach, and The Income Approach These methods work well for valuing most types of commercial real estate. On rare occasions, however, only one method seems to be … [Read more...]
Measuring Economic Obsolescence or Benefit
What is Economic Obsolescence or Benefit? Say what? I'm sure that will be the response of some reading the term 'Economic Obsolescence' for the first time. Just stay calm a second and I'll explain. Basically, obsolescence is a word that describes the state or process of something becoming obsolete. Think eight track tape players or rotary phones. … [Read more...]
Commercial Appraisals: Art or Science?
An appraisal is an opinion of value derived from the market. The three major methods used to formulate an opinion of value (the cost, sales comparison, and income approach) each relies on data derived from the market. Broadly, various elements of comparison are extracted from market oriented transactions, compared with the property under … [Read more...]
Analyzing Commercial Real Estate in Kentucky
Commercial Real Estate Trends in Kentucky The goal of this blog is to provide you with a comprehensive understanding of commercial real estate trends in Kentucky. I want to provide you with a view from 10,000 feet. What factors create value for different property types? What makes one industrial building more valuable than another? How might … [Read more...]