comparative unit method
comparative unit method
An appraisal technique in which direct and indirect costs are totaled and then divided by an appropriate unit to obtain a cost per unit.
Examples include
• Land compared on a value per square foot
• Land compared on a value per front-foot
• Self-storage facilities compared on a value per unit
• Hotels compared on a value per room
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.