August 2, 2017
J.H. Berry & Gilbert’s Paulk Turner, MAI, director of Appraisal and Valuation Services, recently was quoted in an article by GlobeSt. about the complexities of commercial real estate appraisals and how they differ from residential appraisals. “Commercial appraisals require a greater level of research and analysis than residential appraisals, but the primary difference is based on the income-producing potential of commercial properties,” Paulk said. He also discusses the three approaches to value in a commercial appraisal, which include the cost approach, sales comparison approach and income approach. The first installment in his article series focuses on the cost approach. “The cost approach tends to set the upper limit of value before depreciation is considered, and is the most applicable for proposed or recently-constructed properties, where minimal depreciation had accrued.” Read article.