Realty Economic Advisors is proud to offer a variety of commercial real estate valuation and advisory services and bespoke modeling. Our team of experts includes professionals with diverse experience, and our services are tailored to meet each clients’ intended use. Our valuation offering includes Appraisal and Evaluation services for internal decision making, mortgage lending, property tax appeal, litigation services, condemnation, asset monitoring, marketing, and feasibility from simple to complex scopes of work, various ownership interests, including Fee Simple, Leased Fee, Leasehold, and Going Concerns. When supported by market evidence, we can offer an allocation of value from Going Concerns into Physical, Intangible, and Real Estate components. Our professionals are committed to ensuring clients receive the care and solutions needed in any endeavor.

We offer flexible reporting options to meet almost any budget. Each valuation option, as applicable to the respective property scope of work, complies with the minimum standards issued by the Interagency Appraisal and Evaluation Guidelines of the Federal Deposit Insurance Corporation (FDIC), and/or the Uniform Standards of Appraisal Practice (USPAP) where applicable.

Evaluations
Restricted Appraisals
Appraisals
AVMs – Automated
Market Studies
Client-Directed

Market
Liquidation/Disposal
Investment
Partial Interest
Going Concern

Cost Approach

The Cost Approach is based on the principle of substitution, using the cost to construct a similar property as a reasonable alternative. Usually, the subject value is estimated based on a replacement or reproduction cost analysis. The Cost Approach is defined by the 14th Edition of the Appraisal of Real Estate as: “The estimated cost to construct, at current prices as of the effective appraisal date of value, a substitute for the building being appraised, using modern materials and current standards, design, and layout. In addition to estimating the land value, direct and indirect costs are estimated for site and building improvements, and if applicable, depreciation and entrepreneurial incentive is estimated and applied to render an indication of market value. Additional considerations may apply for scenarios such as contract rent being above or below market rent, and lease-up costs for properties not already economically stabilities.”

Sales Comparison Approach

With the Sales Comparison Approach, the value of a property is estimated by comparing it with similarly relevant, recently sold properties (depending on the property type, use, and/or restrictions and encumbrance), relative to the requested date of market value. Inherent in this approach is the principle of substitution, which holds that when a property is replaceable in the market, its value tends to be set by the cost of buying an equally desirable property, assuming no costly delay occurs in making the substitution. As sales of “comparable property” commonly feature variations of similarity, adjustments for economic and physical disparities are considered to be a relevant indication of market value.

Income Capitalization Approach

The Income Approach is based on the premise that properties are purchased for their income-producing potential. It considers both the annual return on the invested principal, and the return of the invested principal. The two fundamental methods of this valuation technique include Discounted Cash Flow and Direct Capitalization. Pro-forma considerations usually include Rental and Miscellaneous Income, Recoveries, Vacancy and Credit Loss, Effective Gross Income (EGI), Operating Expenses, and Net Operating Income (NOI). Additional considerations may apply for scenarios such as contract rent being above or below market rent, and lease-up costs for properties that are not already economically stable.

Fee Simple / Freehold
Leased Fee
Leasehold
Going Concern

Office, Retail, Industrial
Net Leased (CTL)
Net Leased (QSR)
Hotel
Self-Storage
Healthcare
Senior Housing
Special Purpose
Land & Pads
Subdivisions / MPCs
SFR Portfolio
BFR Communities
Multi-Family

Mortgage/Loan Underwriting
Collateral Valuation
Internal Decision Making
Estate Planning
Bankruptcy/Foreclosure Support
Contract Negotiations
Insurance
Highest & Best Use Studies
Property Tax Appeals
Financial Tax & Reporting
Litigation Support/Expert Witness
Financial Feasibility Studies
Financial, Tax & Reporting

Individual Valuation
Bulk Valuations
Portfolio Valuations
Market Rent / Studies
Advisory Services
Consultation by Retainer
Market Rent / Market Studies
Insurable Value
Real Estate Consulting/Advisory

Our Valuation and Advisory services have been used in acquisitions, dispositions, price negotiations, mortgage lending, property tax appeal, financial reporting, litigation support, condemnation, and asset price monitoring. Project feasibility and market analysis services are also available.

Our experience includes working directly with owners, tenants, developers, lenders, estate planners, financial planners, attorneys, insurance companies, and quasi-governmental and public agencies.

We leverage proprietary databases and datasets, advanced software technology, critical subscribership applications, and subscriptions to ensure that our clients receive a meaningful value proposition. We believe in data integrity, the use of key metric applications and relevant market surveys, and timely and accurate reporting.

Client categories typically engaging our services include: