Other Return Rates

Appraisers generally utilize a capitalization rates in their appraisal reports, this rate gives them a basis for converting income into value.  Many investors, however, are interested in knowing a great deal more with regard to a property than its overall cap rate.  Some properties, for example, generate income from several sources based on the gross sales of tenants.  Motels and Hotels generate income from unit rentals, phone charges, cable television fees, internet connections, parking and a restaurant (if it has one).  Golf courses are focused on player fees, but there can be significant income from the bar, sports shop, cart rentals and ongoing membership.  

On occassion appraisers are pulled into the world of commercial real property investment analysis and the world of business entity analysis where a wide range of ratios and return rates are deemed important to value.      

Contact us with your questions or concerns regarding rates of return or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.   

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.