Appraisal Matters

Marketability
An inline-only mall has very different marketability than an anchor-owned mall. Large mall owners and REITs have less interest in this type of investment vehicle and it does not fit into their acquisition strategies. National mall owners do not consider this type of investment, generally limiting the market to local only. Most of the market [...]

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Over the past decade, a trend in regional mall ownership has been becoming more common. Owners can sell some of the anchor sites to the companies that use them and when they sell all of them, the remaining portion that is left is called the inline-only mall. Investors in malls have seen this as a [...]

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The effect of the recession has highlighted how much retail owners and purchasers have relied upon steady or annually improving rents, cash flows and projections. Perhaps it’s not possible to completely prepare for a change in future market conditions, but not adapting to them when making financial decisions can crush cash flow. This two-part blog [...]

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So if the transaction amount is materially greater than the market value as shown by comparables or via another approach to value, is the seller and buyer just wrong about market value or do they know something that the market or the appraiser does not?  What exactly is the difference between the higher transactional value [...]

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A property where supply is so low yet demand always seems to remain high has no downside, right? Guess again.
Ironically, unless they are trophy properties, they are frequently more difficult to sell.  Conventional financing vehicles, which often represent the vast majority of potential financing available, do not work because the properties usually don’t "appraise" for [...]

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As appraisers, we apply a market condition in our appraisals when property values go up and down. But does that mean the adjustments apply to an entire class of properties and that there are no exceptions?
T    Thinking back to Economics 101, price is set at the intersection of the supply and demand curves. [...]

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