Commercial Real Estate Appraisal
The Appraisal of Commercial Real Estate is generally defined as “everything but houses,” since the general public first thinks of a real estate appraiser as a person who appraised their house for a recent refinance or purchase/sale of their home. Commercial Real Estate covers numerous property types including office buildings, retail buildings, industrial buildings, vacant land, apartment complexes, hotels and motels, medical office buildings and hospitals, movie theaters and arenas, nursing homes and theme parks, industrial condominiums and day care centers, churches and universities, banks and auto wrecking yards, plant nurseries and mini-storage facilities, car washes and cold storage facilities; the list is endless.
Most people are familiar with a “form” type of appraisal that they have seen when their home is valued, which takes about one business day to complete and is primarily a “fill-in-the-blank” document generated by a program. Conversely, a commercial appraisal is much more detailed and takes one to two weeks to complete; it is written in a narrative format, typically consisting of 50 to 100 pages or more, and includes several exhibits and different methods of valuation, providing more support for the value of the property; when completed, it looks more like a book and is even bound for simpler reading.
Many commercial properties are income-producing and therefore, are also valued with an analysis of their income potential in relation to their value in the market. In fact, a Commercial Appraisal is at the top of the Appraisal Profession in terms of expertise, education, knowledge and appraisal experience in order to be competently completed. Please refer to the “About” tab in this website which shows lists of Mr. Hulet’s appraisal experience of numerous commercial property types.