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Airport Land Lease Analysis

Discussion in 'Commercial/Industrial Appraisals' started by macmik1950, May 10, 2010.

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  1. macmik1950

    macmik1950 New Member

    0
    Jul 31, 2007
    Professional Status:
    Certified General Appraiser
    State:
    North Carolina
    I'm working on a land lease analysis for a regional airport. I have already called a number of comparable airports to gather lease rates. The Property Manager wants me to consider an adjustment for property values by city. How would I go about finding an industrial land lease benchmark for cities? Would it make sense to use the Marshall Swift "Local Multipliers"?
     
  2. nstanbru

    nstanbru Member

    2
    Feb 19, 2009
    Professional Status:
    Certified General Appraiser
    State:
    California
    First, no, it does not make sense to use the M&S local multipliers. Second, based on your other questions, I would strongly advise that you hook up with a local CG to work with you on this one. Good luck.
     
  3. C. Kevin Bokoske MAI

    C. Kevin Bokoske MAI Junior Member

    0
    Jan 30, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    I have been appraising for 40 years. (I was 3 when I began.) I have been dealing with aviation real estate issues for 5 years. And I am still learning every day. FAA and IRWA are great resources. Aviation use parcels differ from land-side parcels. General aviation can differ from hub airports. FBO are a complete seperate breed. Very few appraisers, even among MAIs and other CG's are well-versed with these items. And you are shown as a "Trainee"? I think you should turn it down or team up with someone. And forget M&S.
     
  4. Ed Falkowski

    Ed Falkowski Senior Member

    1
    Jun 25, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    Ok, I think that we can stop with the "you should really partner with a CG" talk towards the OP. Besides, what kind of client would give an assignment such as a ground lease for a regional airport to a trainee? I don't think that every trainee who posts a question on this Forum should start off the post with "I am a trainee who is working with a CR/CG mentor...". These guys are trying to learn. Yes, I'm sure that they've asked their mentor and I'm sure that their mentor has given them some level of advice. However, I applaud the OP for coming on here to ask questions... I just hope that they can get some good advice. I know that you guys weren't attacking the OP like some others do, but it really frustrates me when this kind of talk is even part of the discussion. Being a commercial "trainee" myself who works with 2 MAIs and 6 other CGs, I would hate to preface every question with that kind of comment.

    To the OP, I cannot be of a great deal of help because I am not well versed on ground leases for airports. That being said, I do not think that it's a good idea to use M&S local multipliers for adjustments to land lease comps. M&S, for all intents and purposes, gives information on depreciable assets. Land is not depreciable (depletion is another story), therefore, M&S local multipliers would be like applying apples to oranges. I'm sure that the more experienced appraisers on the forum could offer better benchmark sources, but I thought that I would give you a good reason to not use M&S. I wish you the best of luck!
     
  5. Howard Klahr

    Howard Klahr Senior Member

    44
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    In all fairness, it is not unreasonable for trainees and residential appraisers working with/under a cert general to at a minimum disclose what issues and questions have been addressed between them.

    Often the questions or issues presented do not contain complete information and usually do not contain sufficient information to properly address the answer. Not that every question or issue requires a novel, but there are entire texts on some of the topics that posters come here looking for simplistic answers. This is not to discourage those with question to post, but rather to encourage posters to provide all relevant details in order to achieve meaningful answers.
     
  6. macmik1950

    macmik1950 New Member

    0
    Jul 31, 2007
    Professional Status:
    Certified General Appraiser
    State:
    North Carolina
    Trainee?

    Well, yes, I'm still a trainee, but just barely - points wise. I work with a highly knowledgeable MAI, and we have discussed this. Before I posed the question to him, I thought I would see what the collective "wisdom" of the group might offer. After the first reply, I pretty much decided to keep my questions to myself. Thanks to those who came to my defense. After a good night's sleep, I realized the M&S question didn't make any sense. I still don't have a good answer to how to find a locational adjustment between cities. In other words, how does industrial land in Asheville compare to Columbia, Fayetteville, Chattanooga, etc.?
     
  7. Abester

    Abester Senior Member

    0
    Jun 12, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    It does not - except by coincidence.
     
  8. PL1957

    PL1957 Senior Member

    6
    Jul 19, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    I'm guessing that if you did the proper analysis, you'd probably find some sort of correlation between attainable industrial rental rates and industrial land values.
     
  9. Abester

    Abester Senior Member

    0
    Jun 12, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Not across the spectrum of
     
  10. PL1957

    PL1957 Senior Member

    6
    Jul 19, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    Why not? If you did a land residual you'd probably see a correlation, regardless of whether its in Asheville or Chattanooga.
     
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