Information to Provide the Appraiser of an Investment Property

The following information will be helpful to your commercial real estate appraiser when appraising investment properties:

1) Market position: Point out to the appraiser what niche your feel that your property fills, and which properties provide the most direct competition. What advantages does the subject property have over others?

2) Leases. Provide the original and all amended leases and renewals so that the full agreements can be reviewed. Are all of the tenancies arms length?

3) Income/Expense statements. Provide three years, along with explanations for any unusual conditions during any of the years. For instance, if one year had an unusual amount of vacancies, or lease up costs, etc.

The appraiser will be following cash flows in and out of the property. Point out any expenses which are displayed as a net amount rather than an outlay by the landlord and reimbursement from the tenant.

4) CAM charge: If applicable, how much is the CAM charge and what does it include? What is the trend in the expenses?

5) Real Estate taxes: Have the taxes been appealed recently or are they being currently appealed? If new construction, are all added assessments in place?

6) Survey

7) Building plans

8) Inspection reports

9) Current status of the property:

a) Is the property listed for sale, for how much, for how long? Report any offers received.

b) Is the property under contract of sale?  

9)  Building condition: 

a). The appraiser will ask you about the age of the major building systems and if anything was replaced recently.

Misc.:  Are there any special considerations such as easements, flood or environmental contamination issues that need to be accounted for?

Better communications will assist the process in moving forward in a more streamlined manner and produce better results.