{"product_id":"commercial-property-valuation-isbn-9781119512127","title":"Commercial Property Valuation","description":"\u003cp\u003e\u003cb\u003eA practical guide to the best approaches for commercial real estate value assessment\u003c\/b\u003e\u003ci\u003e \u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eCommercial Property Valuation \u003c\/i\u003eprovides a comprehensive examination of principles and methods of determining the accurate value of commercial assets. This invaluable resource covers all key elements of commercial property valuation, including valuation queries, real estate report structure, market analysis, capitalization and discount rates estimation, and more. This book details the economic characteristics unique to commercial property and illustrates property-specific risk factors and mitigation strategies. Drawing from years of professional and academic experience, the authors provide accurate information on multiple valuation approaches suitable for commercial real estate such as sales comparison, income capitalization and residual land value. Favoring real-world practicality over complex formulas, this book provides a powerful set of tools to assist readers in selecting and applying the best valuation approach to various situations. Actual case studies of office buildings, hotels, high street retails, and residential developments allow readers to understand and apply appropriate valuation methodologies. \u003c\/p\u003e \u003cp\u003eCommercial property is a major investment class that offers abundant opportunities but poses unique risks. Thorough and inclusive knowledge is essential to success in this complex and competitive sector of real estate. This book provides expert coverage of critical topics allowing readers to:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eIdentify the unique economic characteristics and potential risks of commercial real estate valuation and investment\u003c\/li\u003e \u003cli\u003eFocus on methods specific to commercial real estate valuation\u003c\/li\u003e \u003cli\u003eLearn how to select and apply the appropriate valuation method in a variety of scenarios\u003c\/li\u003e \u003cli\u003eAccess sample Excel spreadsheets and ancillary online resources including slides and useful Internet links\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eCommercial Property Valuation \u003c\/i\u003eis an essential resource for investors, appraisers, consultants, accountants, and students in real estate courses. \u003c\/p\u003e \u003cp\u003eAbout the Authors xi\u003c\/p\u003e \u003cp\u003eForeword by Andrew Baum xiii\u003c\/p\u003e \u003cp\u003eForeword by Vincent Vinit xv\u003c\/p\u003e \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Property Valuation 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDetermining the Valuation Requirement 1\u003c\/p\u003e \u003cp\u003eThe Subject of the Valuation 1\u003c\/p\u003e \u003cp\u003ePurpose of the Valuation 2\u003c\/p\u003e \u003cp\u003eValue to Be Estimated 2\u003c\/p\u003e \u003cp\u003eValuation Date 2\u003c\/p\u003e \u003cp\u003eDefinitions of Value 3\u003c\/p\u003e \u003cp\u003eMarket Value 3\u003c\/p\u003e \u003cp\u003eInvestment Value 5\u003c\/p\u003e \u003cp\u003eValuation Associations, Codes and Standards 6\u003c\/p\u003e \u003cp\u003eNotes 7\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Economic Characteristics and Elements of Risks of Properties 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCharacteristics of Property Investments 10\u003c\/p\u003e \u003cp\u003eBuilding and Land 10\u003c\/p\u003e \u003cp\u003eUse of Space and Investment Asset 13\u003c\/p\u003e \u003cp\u003eOwners and Users 13\u003c\/p\u003e \u003cp\u003eBusiness Perspective 14\u003c\/p\u003e \u003cp\u003eLocation 15\u003c\/p\u003e \u003cp\u003eCategories of Property Investments 16\u003c\/p\u003e \u003cp\u003eDevelopment Projects 16\u003c\/p\u003e \u003cp\u003eIncome-Producing Properties 17\u003c\/p\u003e \u003cp\u003eTrading Operations 17\u003c\/p\u003e \u003cp\u003eSkills in Asset and Investment Management 18\u003c\/p\u003e \u003cp\u003eEconomic Classification of Properties 19\u003c\/p\u003e \u003cp\u003eProperty Classification Criteria 19\u003c\/p\u003e \u003cp\u003eMacro Categories of Properties 24\u003c\/p\u003e \u003cp\u003eA Simple Definition of Risk 28\u003c\/p\u003e \u003cp\u003eCommon Risk Elements in Real Estate Investment 29\u003c\/p\u003e \u003cp\u003eCapital Market 29\u003c\/p\u003e \u003cp\u003eLiquidity 30\u003c\/p\u003e \u003cp\u003eFinancial Structure 30\u003c\/p\u003e \u003cp\u003eRegulatory 31\u003c\/p\u003e \u003cp\u003eLocation 31\u003c\/p\u003e \u003cp\u003eIntended Use and Type of Properties 32\u003c\/p\u003e \u003cp\u003eDevelopment Projects 33\u003c\/p\u003e \u003cp\u003eAuthorisation 33\u003c\/p\u003e \u003cp\u003eEnvironmental 33\u003c\/p\u003e \u003cp\u003eConstruction-Related 34\u003c\/p\u003e \u003cp\u003eMarket 34\u003c\/p\u003e \u003cp\u003eIncome-Producing Properties 35\u003c\/p\u003e \u003cp\u003ePhysical and Technical Features 35\u003c\/p\u003e \u003cp\u003eManagement and Market 36\u003c\/p\u003e \u003cp\u003eRental and Contractual Situation 36\u003c\/p\u003e \u003cp\u003eNotes 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Market Analysis 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Analysis 41\u003c\/p\u003e \u003cp\u003eAnalysis of the Property Market 41\u003c\/p\u003e \u003cp\u003eComparative Data and Valuation Method 43\u003c\/p\u003e \u003cp\u003eCharacteristics of the Comparative Factors and Information Sources 43\u003c\/p\u003e \u003cp\u003eNotes 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 A New Simple Classification of Valuation Methods 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChoice of Valuation Method 49\u003c\/p\u003e \u003cp\u003eDepreciated Cost Approach Methods 53\u003c\/p\u003e \u003cp\u003eIntroduction 53\u003c\/p\u003e \u003cp\u003eDescription 53\u003c\/p\u003e \u003cp\u003eUse, Advantages, and Limitations of the Depreciated Cost Approach 56\u003c\/p\u003e \u003cp\u003eNotes 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Sales Comparison Approach Methods 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApproach and Application Criteria 59\u003c\/p\u003e \u003cp\u003eDirect Comparison Approach 60\u003c\/p\u003e \u003cp\u003eHedonic Pricing Model 63\u003c\/p\u003e \u003cp\u003eNotes 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Income Capitalisation Comparison Approach Methods 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApproach and Application Criteria 67\u003c\/p\u003e \u003cp\u003eDirect Capitalisation Approach 69\u003c\/p\u003e \u003cp\u003eThe Direct Capitalisation Approach Calculation Algorithm 70\u003c\/p\u003e \u003cp\u003eProfit and Loss Account of an Income-Producing Property 71\u003c\/p\u003e \u003cp\u003eUse, Advantages, and Limitations of the Direct Capitalisation Approach 78\u003c\/p\u003e \u003cp\u003eApplication of the Direct Capitalisation Approach 78\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Approach 81\u003c\/p\u003e \u003cp\u003eChoosing the Time Horizon 82\u003c\/p\u003e \u003cp\u003eEstimating the Cash Flows 83\u003c\/p\u003e \u003cp\u003eEstimating the Terminal Value 83\u003c\/p\u003e \u003cp\u003eDiscounting the Cash Flows and Calculating the Asset Value 85\u003c\/p\u003e \u003cp\u003eUse, Advantages, and Limitations of the Discounted Cash Flow Approach 88\u003c\/p\u003e \u003cp\u003eResidual Value Methods 90\u003c\/p\u003e \u003cp\u003eIntroduction 90\u003c\/p\u003e \u003cp\u003eSingle Period Residual Value Approach 90\u003c\/p\u003e \u003cp\u003eMultiple Periods Residual Value Approach 91\u003c\/p\u003e \u003cp\u003eNotes 94\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Property Return Rates 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMeasuring the Return on a Property Investment 97\u003c\/p\u003e \u003cp\u003eRates and Capital Market 101\u003c\/p\u003e \u003cp\u003eCap Rate 103\u003c\/p\u003e \u003cp\u003eDefinition and Description of the Cap Rate 103\u003c\/p\u003e \u003cp\u003eGoing-In and Going-Out Cap Rate 104\u003c\/p\u003e \u003cp\u003eDiscount Rate 107\u003c\/p\u003e \u003cp\u003eDefinition and Description of the Discount Rate 107\u003c\/p\u003e \u003cp\u003eConsistency Between Discount Rate and Cash Flow 108\u003c\/p\u003e \u003cp\u003eThe Components of the Discount Rate 110\u003c\/p\u003e \u003cp\u003eHow to Estimate Property Return Rates 113\u003c\/p\u003e \u003cp\u003eMarket Extraction 114\u003c\/p\u003e \u003cp\u003eDetermining the Discount Rate from the Cap Rate 117\u003c\/p\u003e \u003cp\u003eBuild-Up Approach 119\u003c\/p\u003e \u003cp\u003eAnalysing the Opinions of Market Players on the Return Expected 122\u003c\/p\u003e \u003cp\u003eNotes 122\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Structure of the Valuation Report 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExecutive Summary 128\u003c\/p\u003e \u003cp\u003ePreamble 128\u003c\/p\u003e \u003cp\u003eDescription of the Property 128\u003c\/p\u003e \u003cp\u003eMarket Analysis 133\u003c\/p\u003e \u003cp\u003eValuation 134\u003c\/p\u003e \u003cp\u003eConclusions 134\u003c\/p\u003e \u003cp\u003eAppendices 135\u003c\/p\u003e \u003cp\u003eNotes 135\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Office Property Appraisal 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of the Property 137\u003c\/p\u003e \u003cp\u003eChoice of Valuation Method 139\u003c\/p\u003e \u003cp\u003eMarket Analysis 139\u003c\/p\u003e \u003cp\u003eValuation 140\u003c\/p\u003e \u003cp\u003e\u003cbr\u003e Choosing the Time Horizon 140\u003c\/p\u003e \u003cp\u003eEstimating the Cash Flows 141\u003c\/p\u003e \u003cp\u003eDetermining the Terminal Value 145\u003c\/p\u003e \u003cp\u003eDetermining the Discount Rate 146\u003c\/p\u003e \u003cp\u003eCalculating the Market Value of the Property 147\u003c\/p\u003e \u003cp\u003eNotes 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 High Street Retail Unit Appraisal 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of the Property 153\u003c\/p\u003e \u003cp\u003eChoice of Valuation Method 154\u003c\/p\u003e \u003cp\u003eMarket Analysis 157\u003c\/p\u003e \u003cp\u003eEstimating the ERV 157\u003c\/p\u003e \u003cp\u003eEstimating the Cap Rate 160\u003c\/p\u003e \u003cp\u003eEstimating Vacancy and Leasing Time 161\u003c\/p\u003e \u003cp\u003eEstimating Refurbishment Costs 161\u003c\/p\u003e \u003cp\u003eValuation 161\u003c\/p\u003e \u003cp\u003eNotes 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Hotel Appraisal 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of the Property 165\u003c\/p\u003e \u003cp\u003eChoice of Valuation Method 167\u003c\/p\u003e \u003cp\u003eMarket Analysis 168\u003c\/p\u003e \u003cp\u003eMacroeconomic Climate 168\u003c\/p\u003e \u003cp\u003eSupply and Demand Analysis 169\u003c\/p\u003e \u003cp\u003eForecast of Average Rate and Occupancy 173\u003c\/p\u003e \u003cp\u003eProjection of Income and Expenses 178\u003c\/p\u003e \u003cp\u003eValuation 185\u003c\/p\u003e \u003cp\u003eNotes 187\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Development Project Appraisal 189\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of the Property 189\u003c\/p\u003e \u003cp\u003eChoice of Valuation Method 190\u003c\/p\u003e \u003cp\u003eMarket Analysis 191\u003c\/p\u003e \u003cp\u003eValuation of the Development Project 192\u003c\/p\u003e \u003cp\u003eChoosing the Time Horizon 192\u003c\/p\u003e \u003cp\u003eEstimating the Cash Flows 194\u003c\/p\u003e \u003cp\u003eDetermining the Discount Rate 195\u003c\/p\u003e \u003cp\u003eCalculating the Market Value of the Development Project 197\u003c\/p\u003e \u003cp\u003eNotes 197\u003c\/p\u003e \u003cp\u003eGlossary 199\u003c\/p\u003e \u003cp\u003eBibliography 205\u003c\/p\u003e \u003cp\u003eIndex 209\u003c\/p\u003e \u003cp\u003e\u003cb\u003eGIACOMO MORRI,\u003c\/b\u003e PhD, MRICS, is Faculty Deputy and Associate Professor of Practice in Corporate Finance and Real Estate at SDA Bocconi School of Management (Milan, Italy) and a lecturer of Real Estate Finance at Bocconi University (Milan, Italy). He served as a Director of the Master in Real Estate and the Executive Master in Corporate Finance and Banking, and was in charge of real estate executive education. Giacomo is former President and a board member of the European Real Estate Society. He is a freelancing advisor for several real estate companies and asset managers, a non-executive director at UnipolSai Investimenti SGR, and a RICS Registered Valuer. He is also on the advisory board of several real estate funds and a board member of various real estate companies.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e PAOLO BENEDETTO,\u003c\/b\u003e MRICS, is Advisory \u0026amp; Valuation Director at Agire – IPI Group, an Italian real estate service company. His specialization is in real estate valuations. He is an Academic Fellow of Real Estate Finance at Bocconi University (Milan, Italy) and a Fellow of Corporate Finance and Real Estate at SDA Bocconi School of Management (Milan, Italy). Paolo is a member of the Italian board of the Royal Institution of Chartered Surveyors (RICS) and a RICS Registered Valuer.   \u003c\/p\u003e\u003cp\u003eDetermining the true value of a commercial property is essential in many circumstances, such as for investment or strategic purposes as well as for economic feasibility studies. \u003ci\u003eCommercial Property Valuation\u003c\/i\u003e offers a comprehensive guide that helps determine the Market Value of a property using logical, clear and mutually agreeable methods based on credible and objective data.\u003c\/p\u003e \u003cp\u003eSupported by a straightforward description of the economic characteristics of properties as well as of their risks, \u003ci\u003eCommercial Property Valuation\u003c\/i\u003e offers an approach to valuation that looks at each property as a company, whose value directly depends on the revenues deriving by the product offered to the marketplace – the use of space leased to tenants, and its related risk. Examples and case studies are also provided to support the theoretical base and to facilitate an immediate comprehension and application.  \u003c\/p\u003e\u003cp\u003eBased on the authors combined professional and academic experience, \u003ci\u003eCommercial Property Valuation\u003c\/i\u003e is a real-world guide for distinguishing theory from what is effective in practice and is addressed to both professionals who operate in the real estate sector and the inexperienced who, for personal or professional reasons, need to estimate the value of a real estate asset.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988949319909,"sku":"NP9781119512127","price":63.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119512127.jpg?v=1761782173","url":"https:\/\/k12savings.com\/es\/products\/commercial-property-valuation-isbn-9781119512127","provider":"K12savings","version":"1.0","type":"link"}