10 Questions To Ask Before Hiring a Commercial Real Estate Appraiser

Posted on Feb/4/15

Before employing the services of a commercial real estate appraiser, it makes sense to engage potential appraisers in a thorough discussion about their appraisal experience, business background and general viewpoint about the type of property you would like to have appraised.

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Estimating Capitalization Rates – Part III

Posted on Nov/12/13

In the first two parts of this series, we have introduced and defined four different methods of estimating capitalization rates. In this part of the series, we will take a detailed look at market-derivation methods and the factors that should be considered when extracting market-derived capitalization rates. As has already been discussed in the previous two installments of the series, market derivation is the most reliable and applicable approach in most cases. The band of investment and debt coverage ratio methods are the next best options, and the investor survey method can be a reliable check for the other methods.

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Supporting Capitalization Rates – Part II

Posted on Oct/31/13

In the first part of this series we talked about the importance of accurately estimating the capitalization rate within a direct capitalization analysis and briefly introduced four common methods used to estimate a capitalization rate (OAR). In this part of the series we will more thoroughly describe and define these four methods which include market derivation, band of investment, debt coverage ratio, and investor’s survey. As we discussed in the first post, deriving capitalization rates from comparable sales is the favored method.

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