Commercial and industrial property appraisals are in flux, still subject more to appraiser judgment than to statistical analysis (automated valuation [AVM] or computer-assisted mass appraisal [CAMA] models). Intended users vary greatly. Wealthy buyers have various interests and levels of trust in statistics, and lenders have sophisticated software for testing the statistical quality of appraised values. Therefore, appraisers have clients and intended users with dramatically different views of statistics in the valuation of commercial and industrial properties. Sales of larger commercial and industrial buildings are normally too spread out geographically to identify location adjustments by commercial and industrial neighborhoods. With the use of geographic information systems (GIS), most appraisers can develop statistical locational support or adjustments without resorting to fixed boundaries of commercial and industrial neighborhoods. This research project supports the use of statistical software in combination with GIS to allow appraisers to expand their geographic areas of expertise to the state or national level. Results show that acceptable quality statistics on the estimates of market value can be achieved with many different commercial and industrial use codes compared to known sale prices in the modeling (sales) file.
Valuation of commerical property
O'Connor, P. M. (2019). Determining AVM market values of large commercial properties in Florida at the state level. Journal of Property Tax Assessment & Administration, 16(2), 63-75. Retrieved from https://researchexchange.iaao.org/jptaa/vol16/iss2/4