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, RD Clifford Associates has been a leader in commercial real estate appraisals in New York, New Jersey, and Pennsylvania. 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

RECENT APPRAISAL/VALUATION PROJECTS

  • 200,000 sq. ft. Manufacturing Facility in Garfield, NJ
  • Three Proposed Condominium Buildings in Bergen County, NJ
  • Two Franchised Motels in Suffolk County, NY
  • Apartment Building – Highlands, NJ
  • Retail Shopping Center, Clarkstown, NY
  • Hotels in Ocean, Atlantic & Cape May Counties, NJ
  • 189,000 sq. ft. Manufacturing Facility in Illinois
  • 2 Long Term Acute Care Hospitals in Florida