The Real Estate Investment Market
By: John T. Schmick Investment real estate encompasses a broad range of real property types. Transactions often involve large properties bought and sold by institutional investors at the national level or in a national investment market. Participants include pension funds, investment advisers, insurance companies, and investment banks. In general, these are buyers and sellers that […]
Summary of: State of Minnesota vs. Union Pacific Railroad, et al.
By: Christopher J. Stockness Court File No. 27-CV-07-20490, Fourth Judicial District Court In the above matter, State of Minnesota vs. Union Pacific Railroad, et al., Shenehon Company aided Malkerson Gilliland Martin LLP in successfully obtaining a reasonable damage award for the property owner. The Commissioners’ findings, dated December 23, 2008 and filed on January 5, […]
Cap Rates Fluctuate with the Market – By John G. Flaherty
Appraisers are frequently asked where “cap rates” are heading – another way of asking whether values are going up or down. The capitalization rate (cap rate) is the ratio of net operating income to property price. It determines the return on investments. Fluctuating cap rates have a significant impact on property values. The capitalization rate […]
How is Value Created? – By Clayton J. Shultz
The time-honored understanding of the purpose of a business is that it exists to maximize the wealth of its shareholders. Despite much agreement on this definition, there is relatively little agreement on how firms should go about maximizing this wealth. In fact, this is perhaps what makes business such a dynamic endeavor. This article focuses […]
Real Estate ‘Use Value’ in Business Enterprises – By Charles A. Miller
The concept of “value” is paramount for the business and real estate communities. Vast sums of capital are committed based on opinions of value. Value is also a key component in litigation and taxation matters. When valuing real estate and businesses, the most commonly used standard of value is that of “market value”. There are […]
Appropriate Use of the Development Cost Approach in Condemnation
By: Christopher J. Stockness In the majority of condemnation cases, damages relate to the loss of value under a property’s highest and best use (HBU) – often the property’s current use. A knowledgeable appraiser can quantify this loss by performing a before and after valuation using the three standard approaches to value. However, what happens […]