Capitalization rates are one of the areas that receive a lot of analysis within the commercial appraisal world. Various firms and data services report monthly, quarterly, and annual trend data as it relates to capitalization rates. Capitalization is the conversion of income to value. A capitalization rate is the rate used to convert income into value.
Dart Appraisal’s commercial appraisal review team often encounter what appears to be a common misunderstanding about which value scenario should be used in handling proposed construction in an appraisal report, the hypothetical “As Complete” value scenario or the prospective “Upon Completion” value scenario.
Dart Appraisal always has two goals in mind – acquiring competitive bids for you and providing quality appraisals that meet your deadlines. As we focus on obtaining competitive bids and maintaining a quality level of service, we offer the following commercial appraisal tips to keep in mind…
The Mortgage Bankers Association Research group released a report highlighting market trends in relation to the commercial/multi-family real estate industry. 2017 was a record setting year for commercial real estate finance with $530 billion in loans backed by commercial and multifamily properties.