Y-TOWN
Junior Member
- Joined
- Mar 10, 2007
- Professional Status
- Certified General Appraiser
- State
- Ohio
I have a appraisal due in about two weeks. The building is a professional building less than 10 years old @6,000 S/F. As a user building this property is worth $100 per S/F.
The owner leased it for $4 net for five years for no good reason (not a brother in law or anything like that). By the income approach the building is worth 1/2 of the fee simple interest. The subject is a typical user building that the developer built for the Red Cross and charged approximately 1/2 of the structures potential rent on a per S/F basis for what reason I don't know.
As a user building in the fee simple interest the structure is worth 2 times the leased fee value.
How do I handle this?
Thanks in advance for any good answers
y-town
The owner leased it for $4 net for five years for no good reason (not a brother in law or anything like that). By the income approach the building is worth 1/2 of the fee simple interest. The subject is a typical user building that the developer built for the Red Cross and charged approximately 1/2 of the structures potential rent on a per S/F basis for what reason I don't know.
As a user building in the fee simple interest the structure is worth 2 times the leased fee value.
How do I handle this?
Thanks in advance for any good answers
y-town