This is a type of appraisal work where the going-concern values of personal property and intangible assets would be useful flit were possible to do so in a definitive manner.
1 of The Appraisal of Real Estate, 13th edition (Appraisal Institute, 2008, page 30), where the going-concern value of a business enterprise is divided between tangible property (composed of personal property and real property) and intangible property of various types.
In order to use the residual technique for estimating real property value, an appraiser of a going concern would need a definitive mechanism for estimating the going-concern value of the personal property, the going-concern value of the business intangibles, the net operating income for the overall property, the capitalization rate for the going-concern personal property, the capitalization rate for the going-concern business intangibles, and the capitalization rate for the going-concern real estate.
First, the lack of availability of good-quality care homes, particularly in the South-East of England, coupled with improved profitability has pushed up going-concern values
theories changes in firms' going-concern values and improvements
even if firms could be sold for their full going-concern value.
Liquidation values in bankruptcy plans may be understated, and going-concern values may be overstated, since a firm has an incentive to try to convince creditors that the firm is worth more alive than dead.
If we assume that assets can be sold for their estimated going-concern value, a typical firm's return matches the return to a benchmark portfolio.
By employing standard valuation techniques, with a strong reliance on market rent, an appraiser can identify and estimate real estate, business, and going-concern values of a modern shopping center, and can test them for both consistency and reasonableness.
The answers are most likely a combination of effects contributing to the mall's going-concern value.
In fact, the real estate values are not different; use value and/or going-concern values are different.
Because many lenders are not fully aware of the security for their loan, appraisers should educate lenders on the use value, going-concern value, and market value of the real estate for special-purpose properties.