I recently read a fascinating article by Mr. Stephen D. Roach, MAI, that was published in The Appraisal Journal. The title of the article is "Is Excess Rent Intangible." A Powerpoint presentation summarizing the argument he presents in the article may be downloaded here. One of the important points Mr. Roach makes in the article is the ambiguity … [Read more...]
Asset Allocation: Tangibles vs. Intangibles
As a follow up to a previous post, those keeping track of the debate on allocating tangible and intangible assets for the purpose of real estate taxation may find this article interesting. In summary, the article suggests that methods used to allocate the value of the real estate that fail to account for "return on" as well as "return of" capital … [Read more...]
Allocating Value: Tangible vs. Intangible Assets
The subject of a recent appraisal required me to form an opinion of the market value of the going concern of a business enterprise. As it turns out, the value of the business was significantly higher than the value of the underlying real estate asset. Most of the difference was attributable to intangible assets of the business enterprise (supplier … [Read more...]