Special-Purpose Property

Most appraisers are confronted with an appraisal assignment that offers as its problem the appraisal of a special-purpose property once in a while.  The church, fitness center, bowling alley or bank seem to be some of the special-purpose properties that we see most often.

Special-purpose properties generally have one highest and best use, the use for which they were designed, usually their "as improved" use.  At times there is a limited market for special-purpose properties, generally it is small and specialized.  As an example, a number of churches changes hands in the metro Las Vegas market area during any given year, and at time there are comparable sales that can be used in a sales approach analysis.  The market for churches is, however, small and the use of a church buildings for other uses is often not possible.  The cost approach is often the approach used by an appraiser when completing an assignment on a special-purpose property.  

The alternate use of well-depreciated and/or functionally obsolete special-purpose buildings is often demolition and re-development of a property for an entirely new or different use.  On occasion, a banks or a churches can be converted for another use.  If conversion of a building to a different use is a possible, that scenario would usually be considered by the appraiser.  

The appraisal of special-purpose properties is generally more of a challenge than the appraisal of a typical retail building, office or industrial properties.    

Contact us with your questions or concerns regarding special-purpose properties or regarding your appraisal assignment in Nevada via e-mail at grigdon@cox.net or by phone at 1-702-568-6699. 

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