Author: Martens Appraisal

One of our favorite sites for the latest on economic conditions in Wichita and throughout Kansas is Wichita State Universities Center for Economic Development and Business Research (CEDBR).   Here is some recent information they provided on the Kansas transportation, health care and finance and insurance industries.  Transportation Industry News and Developments Transportation and warehousing employment has risen sharply inKansas in the past two years after remaining relatively flat for much of thelast decade. Since 2015, the sector added almost 6,000 new jobs, a 13.3 percentincrease. The vast majority of this…

Read More

Overall Economic ActivityMost of the twelve Federal Reserve Districts reported that their economies expanded at a modest or moderate pace from mid-October through late November, though both Dallas and Philadelphia noted slower growth compared with the prior Beige Book period. St. Louis and Kansas City noted just slight growth. On balance, consumer spending held steady – District reports on growth of nonauto retail sales appeared somewhat weaker while auto sales tended to improve, particularly for used cars. Tourism reports varied but generally kept pace with the economy. Tariffs remained a…

Read More

The concept of highest and best use is one of the fundamental principles that underlies real estate appraisal. Highest and best use requires that the appraisal considers not just the current use of the property but also the potential value associated with alternative uses. The Appraisal Institute has four tests that appraisers can use in order to narrow down all of the alternatives to one highest and best use of the property.  Four Tests for Highest and Best Use You can use the following four tests to find the highest and best…

Read More

Officials with public companies shared their full-year 2018 expectations on third-quarter earnings calls, but some shared thoughts on renovations, group business and more to come in 2019. The year isn’t over yet, but executives from public companies on third-quarter earnings calls were sharing what they expect to see in 2019. There are headwinds ahead for some hotel brand companies and real estate investment trusts, but the overall tone on calls in regards to next year was positive. Leslie Hale, CEO, RLJ Lodging Trust “The ongoing renovation at our largest asset,…

Read More

The Income Approach to Real Estate Valuation The income approach is one of three techniques commercial real estate appraisers use to value real estate. Compared to the other two techniques (the sales comparison approach and the cost approach), the income approach is more complicated and therefore it is often confusing for many commercial real estate professionals. In this article, we’ll walk through the income approach to property valuation step by step, including several income approach examples. What is the Income Approach to Valuation? The income approach is a methodology used…

Read More

Appraisers use three different methods to estimate the value of a property. The income approach considers the value as the present value of future expected cash flows generated by the property. It is most accurate when valuing commercial properties with rental income in active markets. The sales comparison method relates the estimated value of the subject property to similar properties that have recently sold in the same market. This method is particularly useful when the comparable properties and the subject property are highly similar and were sold within the past…

Read More

It’s Black Friday! Hopefully, you are getting some good deals and avoiding situations like this: While we always strive to keep our prices down, many people who are unfamiliar with the commercial appraisal process are stunned after they are provided with a commercial appraisal quote.  If you are only familiar with the costs/fees and turn-around times for single-family residential appraisals you may not understand the costs and time associated with a commercial report. A commercial appraisal can take from 30 hours to several weeks depending on the complexity of the report. The…

Read More