For a school in South Dallas, we complemented the replacement cost analysis with detailed photos, building description, and sketch.
From tacos to fish: the owner needed a small-business loan.
Neighborhood retail appraisals require analysis of visibility, access, traffic count, parking, and nearby draws, such as a high school, a sports complex, fast food, or grocery. Sale prices of comparable properties must be adjusted for these influences. The dental office or vet near a school usually will appraise higher than the one in the quiet neighborhood.
There are 2 kinds of office condos around Frisco and McKinney: turnkey and shell.
The turnkey projects come ready for clients—or patients. The shell type are less expensive, but the buyer must finish out. Sales comparison and income approaches to value need adjusting accordingly. Medical-office condo values are enhanced if mixed uses exist in the same project. Some have restaurants and retail. Others have the doc, the dentist, the CPA, the attorney, and the vet, all in one project. Vacancy rates impact the income approach in these new projects.
Establishing cap rates for Class B office space is pretty simple. But the vacancy rate of subject vs. comparables was a challenge.
A former Walmart in excellent condition with beaucoup parking: The appraisal client wanted to know potential income if he moved his business into half. His idea was to rent to a medical equipment or other business that needed the parking and some extra storage.
Some buildings have more value because they convert to (or from) commercial flex space. The challenge here was whether the neighborhood codes would allow an alternative use if re-sold.
This is one of those old houses with lovely bones and a big back yard for patio dining. Pesky parking problems at the time affected value, but they were offset by the attraction across the street.
It’s difficult to assess rental rates unless you know for sure where the common-area maintenance begins and ends.
Given the huge variety in condition and configuration in surrounding buildings—let alone parking issues—this appraisal needed extra comparables for adjustment analysis.
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