Industries Served
Certain types of
commercial and
especially
certain
industrial real
estate appraisal
assignments
require that an
appraiser
understand the
economic
conditions that
are can have a
profound effect
on the supply and
demand of the
underlying real
estate assets.
This is
particularly true
of special
purpose real
estate.
Special purpose
real estate is
often defined as
"a limited market
property with a
unique physical
design, special
construction
materials, or a
layout that
restricts its
utility to the
use for which it
was built" (The
dictionary of
Real Estate
Appraisal, 4th
Edition, p. 272).
To achieve the
necessary level
of competence in
knowing the value
of such a
property the
appraiser needs
to have an
understanding of
the supply and
demand and other
critical economic
aspects which may
create either
excessive demand
for the asset, or
create economic
or external
obsolescence for
those assets.
It is critical
that the entity
hiring the
appraiser for
such a project
have both a very
strong ability to
grasp the
economic issues
affecting the
real estate as
well as
understanding the
unique and
oftentimes
complex
construction
characteristics
of these real
estate assets.
Moreover, the
appraiser will
need to have, at
minimum, an
understanding of
the demand for
the other
integrated
capital assets
which are often
intertwined into
the real estate,
both literally
and conceptually.
As an example,
when a commercial
appraiser
undertakes a
highly complex
appraisal
assignment
involving special
purpose real
estate in an
integrated
facility such as
a processing
plant, or
research and
development
facility, there
will be a great
deal of
special-purpose
equipment located
within the inside
of the building
structures as
well as located
in various areas
on the facility's
site.
Specialized areas
may include
extrusion lines,
equipment
mezzanines,
equipment pits,
holding tanks,
process piping,
ventilation
stacks,
specialized
flooring,
specialized
insulation, clean
rooms, conveyor
systems, loading
systems, high
capacity
electrical bus
ducts, on-site
water treatment
plants,
settlement ponds,
silos, and
pressurized gas
systems.
It is also
important that
the appraiser
have the
necessary work
experience and
other training to
understand not
only what is
technically real
estate, but what
should be
classified as
process equipment
or trade
fixtures.
In these types of
assignments it
also necessary
for the corporate
valuation expert
to be able to
ascertain what
the highest and
best use of the
facility is.
In addition to
needing to
comprehend
multi-discipline
valuation
concepts and
practices, the
appraiser must
also be very
skilled at the
cost approach to
value when
dealing with the
real estate
assets.
This is area
where many
appraisers are
rather weak in
their
capabilities.
This tends to be
especially true
for residential
appraisers that
later try to
upgrade their
careers to
commercial work.
It is also
advisable to be
somewhat wary of
appraisal mills,
that tend to
claim that "all
they do is
appraise ____".
These firms often
cut prices so low
to maintain their
market share in a
given industry
sector that the
quality of their
work suffers.
Further, if all
they do is one
thing, how can
they know what to
do with the
property if its
current use is no
longer viable?
Appraisal mill,
or high-volume
industry sector
appraisal shops,
tend to use a lot
of boilerplate in
their reports
too,
since, they
attempt to do a
one-size fits-all
analysis and will
also frequently
use only one
approach to value
as opposed to the
three approaches
to value (cost,
income
capitalization,
and sales
comparison).
Advanced
Appraisal
International,
under the
direction of Eric
L. Risberg, ASA,
MAI has
experience in
many different
industries.
We take pride in
developing
extremely
insightful market
analysis sections
to our reports
involving special
purpose real
estate as well as
a careful
evaluation and
application of
all three
approaches to
value when it is
required to do
so.
Accommodation and
Food Services
Industry
Food Services and
Drinking Places
Hotels and Motels
and Resort
Agriculture,
Forestry,
Fishing, Crop
Production
Industry
Animal Production
Farms
Fishing, Hunting
and Trapping
Forestry and
Logging
Plantations
Support
Activities for
Agriculture and
Forestry
Vineyards/Winery
Arts,
Entertainment,
and Recreation
Industry
Amusement,
Gambling, and
Recreation
Industries
Moving Theaters,
Spectator Sports,
and Related
Museums,
Historical Sites,
and Similar
Institutions
Educational
Service Industry
Classrooms,
Schools, College,
Research and
Development
Industries
Finance and
Insurance
Industry
Insurance
Carriers and
Related
Activities
Securities,
Commodities
Governmental
Administration of
Housing Programs,
Urban Planning,
Executive,
Legislative, and
Other General
Government
Sectors
Public
Administration
Health Care
Industry
Hospital, Nursing
and Residential
Care
Social Assistance
Care Services
Manufacturing
Industry
Apparel
Manufacturing
Plants
Beverage and
Tobacco Product
Manufacturing
Chemical
Manufacturing
Computer and
Electronic
Product
Manufacturing
Electrical
Equipment,
Appliance, and
Component
Manufacturing
Fabricated Metal
Product
Manufacturing
Furniture and
Related Product
Manufacturing
Leather and
Allied Product
Manufacturing
Machinery
Manufacturing
Miscellaneous
Manufacturing
Nonmetallic
Mineral Product
Manufacturing
Paper
Manufacturing
Petroleum and
Coal Products
Manufacturing
Plastics and
Rubber Products
Manufacturing
Primary Metal
Manufacturing
Printing and
Related Support
Activities
Textile Mills
Operations
Transportation
Equipment
Manufacturing
Wood Product
Manufacturing
Facilities
Mining, Oil and
Gas Extraction
Industry
Asphalt Batch
Plants
Construction
Industry
Quarries and
Concrete
Production
Facilities
Publishing and
Communication
Industry
Broadcasting and
Telecommunications
Information
Services and Data
Processing
Services
Motion Picture
and Sound
Recording
Industries
Technology
Electronic Device
Fabrication
Plants
National Security
and International
Affairs
Semiconductor
Plants
Space Research
and Technology
Transportation
and Warehousing
Industry
Air
Transportation
[more]
Couriers and
Messengers
Pipeline
Transportation
Postal Services
Rail
Transportation
Transit and
Ground Passenger
Transportation
Truck Terminal
Facilities
Truck
Transportation
Warehousing and
Storage
Water
Transportation
Wholesale and
Retail Trade
Industry
Automotive
Industry
Building Material
and Garden
Equipment and
Supplies Dealers
Clothing and
Clothing
Accessories
Stores
Durable Goods and
Nondurable Goods
Electronics and
Appliance Stores
Food and Beverage
Stores
Furniture and
Home Furnishings
Stores
Gasoline Stations
General
Merchandise
Stores
Health and
Personal Care
Stores
Miscellaneous
Store Retailers
Motor Vehicle and
Parts Dealers
Nonstore
Retailers
Sporting Goods,
Hobby, Book, and
Music Stores
Other
Personal and
Laundry Services
Operations
Religious or
Civic Uses
Repair and
Maintenance
Operations
Utilities
Waste Management
and Remediation
Facilities
Eric L. Risberg,
MAI, ASA, the
founder of our
company, has
provided
appraisal and
valuation
clients in these
industries for
nearly 20 years.
If you are
looking to have
an appraisal or
other consulting
work done
for any type of real
estate and if you
need a consulting
expert, please
contact
Eric L.
Risberg, MAI,
ASA, for a free
initial
consultation and
a fee quote. You
may either call
us at 415-531-1414, or,
please fill out the
convenient and
confidential
short form
on our web site
and you will
receive a call
from us in a few minutes.
Advanced Appraisal International, Inc. is a San Francisco Bay Area-based commercial real estate appraisal firm that has valued billions of dollars of real estate across the United States and has conducted services internationally. With nearly 20 years of experience, and an MAI and ASA accredited professional staff, the firm is one of the most innovative and experienced in all aspects of the most complex real estate and corporate valuation assignments. Copyright 1995-2010. Last Updated November 7, 2010.