The Values worksheets consolidates value conclusions from the approaches and provides a table for making various adjustments to value conclusions. Values are reported as lump sums, price per square foot and price per unit. The default price per square foot is based on gross building area, but this can be changed by making a selection in the square foot drop-down list in cell E4. 

The two default adjustment categories are:
  • Deferred Maintenance: This is defined as curable, physical deterioration that should be corrected immediately, although work has not commenced; denotes the need for immediate expenditures, but does not necessarily suggest inadequate maintenance in the past. Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).

  • Stabilization Expense: (See Rent Roll: Stabilization Calculations)
    This category includes the following:
    • Present value of lost rent due to vacancy and rent free periods during lease-up
    • Marketing costs associated with leasing, including
      • Advertising
      • Commissions
      • Legal Costs
      • Contribution to tenant fit-up
      • Other

Tip: Help pages can be printed (link at bottom), but hey, we're all going green, so please think twice before printing.

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