Commercial Real Estate Appraisals – Commercial Appraiser
Of the three principal methods for appraising property-cost, sales comparison, and income capitalization-it is the latter that is principally used for commercial property such as shopping centers, industrial sites, large apartment complexes, and office buildings. The reason for this is rather straightforward: the primary purpose for acquiring such an asset that is not owner occupied is to generate income. It is the commercial real estate appraiser who will examine the property’s ability to provide a positive annual return on invested capital. It takes into consideration the rent that a property can be expected to earn, the market value of the land or site, and the resale value when the property is sold. The commercial real estate appraiser will always seek to determine the highest and best use of the property, and then value can be determined.
More specifically, the methods of direct capitalization and yield capitalization will be employed by New Jersey appraisers. The former is widely used when income is not expected to vary significantly over time. For example, direct capitalization would be used in commercial real estate appraisals to value an apartment building in which the leases are not expected to rise greatly year over year. The net operating income (NOI) is derived from a single year’s net income or an average of several years which is then divided by a capitalization rate to derive value. On the other hand, yield capitalization views properties as long-term holdings, thus the income stream needs to be assessed by New Jersey appraisers for a period of years. One needs to take into account factors such as inflation, the rise in rents due to future capital expenditures like renovations, or unexpected increases in maintenance and repair costs. A current value of the return for the anticipated holding period of the property is what is determined.
Since 1990, RDC Appraisals, LLC has been a leader in commercial real estate appraisals in New York and New Jersey. We are experienced in valuing commercial properties of all sizes and for all purposes. You can rely upon our detailed reports to provide you with all relevant information and an accurate valuation.
Client List
Churches
First Church of Christ Scientist
Alliance Church
Financial Institutions
ABN Amro
Columbia Bank
Commerce Bank
Habib American Bank
Imperial Capital Bank
IndyMac Bank
JP Morgan Chase
Lakeland Bank
LaSalle Bank
Oritani Savings
Spencer Savings Bank, SLA
Synergy Bank
The Provident Bank
The Bank of New York
TD Banknorth, N. A.
US Trust NY
Valley National Bank
Washington Mutual
Wells Fargo Bank
Government Agencies
New Jersey Department of Transportation
New Jersey Green Acres Program
Judiciary
Middlesex County Court, New Brunswick, NJ
NJ Superior Court, Hackensack, NJ
Passaic County Tax Court, Morristown, NJ
Superior Court, Paterson, NJ
Lending & Mortgage Companies
Amerisave Mortgage Corporation
CIT Small Business Lending Services
GE Capital
Stewart Title Guaranty Company
Success Mortgage
Superior Mortgage
UPS Capital Business Credit
Law & Professional Firms
Winne Banta
Harwood Lloyd
Hunziker, Jones & Sweeney
Wolf & Sampson
Municipalities
Borough of New Milford
Borough of Upper Saddle River
Borough of River Vale
Borough of Park Ridge
Real Estate Appraisal & Services
DJM Asset Management
PCV/Murcor
US Corporations
Hertz Corporation
Nissan Motors Acceptance Corporation
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