Single Story, Multi-Story, and Medical Office Buildings
Office properties are commmonly valued through the income approach. Their value can be affected by tenant mix, lease structure, occupancy, build-out requirements, common areas, parking and the ability to adapt the building for future users. PTA reviews the operating and physical characteristics that distinguish the property from generalized appraisal assumptions.
Factors our consultants review
- Valuation-date occupancy and available space
- Different rental rates by floor, suite type or tenant
- Upcoming lease expirations and tenant concentration
- Concessions, tenant-improvement allowances and leasing commissions
- Full-service, modified-gross and triple-net lease structures
- Short-term leases and the risk they create
- Excessive common area or inefficient building configuration (i.e. Atriums)
- Parking limitations and access issues
- Market rent versus related-part or above-market contract rent
- Potential duplication between real estate improvements and separately assessed business personal property