Allan Riorda has completed more than 2,000 transactions in the subject market
Market value of a property rests on the foundation of determining "the present value of all of the future benefits it brings to the owner." (15) The analyst, in measuring the market support for a property use, examines the current and future demand and competitive supply in the subject market
. (16) Therefore, the purpose of a highest and best use study is to forecast what is the most probable alternative use of the property that will produce the highest present value of future benefits that can be realized by the owner of the property.
2 depicts a foundry with strengths in molding capability and labor costs, both considered to be competitive advantages in the subject market
One such gambit is the straightforward misrepresentation of future supply in the subject market
, which is a variant of the "ignore the future" maneuver on the economic forecast side.
For example, the 20-year average national cap rate for investment- grade office buildings might be 8.0%, but the sustainable rate concluded for a subject market
might be in the 8.5% to 9.5% range.
* Estimate the potential gross revenues for the subject property based upon an examination of the prior operating history of the subject property (if available), operating history of comparable properties in the subject market
area and on a national basis, and an analysis of industry trends.
At first glance, one might ask how comparables as far away as 175 miles could reflect the local subject market
Fundamental demand analysis begins with inferred analysis but goes beyond the inferred trend analysis level by forecasting demand based on the segmentation of broad demographic and economic data to reflect the specific subject market
. This market analysis follows the same six-step process and is described as a Level C or D study in Table 2.
Futher all the appraisal forms list Certification Statement 11, which states: I have knowledge and experience in appraising this type of property in the subject market