The issues surrounding drugstore valuation can make for a challenging assessment. Even though drugstore sales are actually leased fee transactions, adjustments for property rights can be made to reflect a fee simple value. Even though development costs and rent may be inflated if developers pay above-market prices for premium corners, these factors can be measured and adjusted. Understanding these issues can help assessors develop mass appraisal models that result in an accurate estimate of fee simple market value and ensure equity for all drugstores in their jurisdiction.
Valuation of commercial property
Wilmath, T. (2010). A prescription for assessing drugstores. Journal of Property Tax Assessment & Administration, 7(2), 13-25. Retrieved from https://researchexchange.iaao.org/jptaa/vol7/iss2/2