First Quarter
Millennials aren’t the only renters in town, but the sheer size of this group makes them as significant to the multifamily market as construction growth and employment rates. They’re staying in college longer, delaying marriage, having kids later and, perhaps most important, putting off buying their first homes. That’s a big reason why the multifamily rental market keeps going and going and is nowhere close to gone.
Construction on the nation’s first true high-speed rail line and largest public infrastructure development is underway, nearly nine years after California voters approved the $64 billion project to connect Los Angeles and San Francisco. Appraising and acquiring the 3,800 acres necessary to complete the full rail line could be an appraiser’s dream job — or greatest challenge.
The valuation of ground leases presents appraisers with significant opportunities and challenges. Their expertise can provide input for the initial lease, for the later lease renegotiation and for the resolution of disagreements through arbitration. But this niche market is not always well understood, and appraisers may discover a dearth of quality data.
Second Quarter
It’s easy to speculate that retail is in trouble, but dramatic headlines announcing store closures and the death of shopping malls don’t tell the whole story. The industry isn’t dying; rather, it’s adapting to consumer preferences for online retailing and other nontraditional models. That means appraisers working in this sector must navigate a challenging landscape where some properties thrive, others die, and e-commerce is a fascinating change agent.
Appraisers working in rural markets face multiple opportunities and challenges, as do lenders serving these communities. Read what it’s like to work in areas where appraisers are scarce but valuation work is plentiful, where data collection is complicated by the fact that years can pass between property sales, and where prices for cotton or soybeans can influence land values.
The valuation profession has encountered new challenges and legal tactics that have exposed vulnerabilities in many current engagement agreements. Appraisers, therefore, need to update the language they use in engagement letters with the addition of three important provisions.
A number of factors are changing the public’s relationship with cars, including car sharing, autonomous vehicles, electric cars and sustainability initiatives that urge people to rethink their need for and use of personal vehicles. No one can say for sure how the transportation revolution will play out or how it will affect real estate, but appraisers need to understand these trends and the significance they can have on the valuation profession.
Assignments that involve easements require appraisers to define the scope and terms of the acquisition, a challenging task that directly influences both the easement value and any damages to the remainder property. Read about how valuation professionals can successfully navigate the multiple demands involved with this type of work.
High-ranking valuation professionals at some of North America’s largest real estate firms participated in a panel discussion at the 2017 International Valuation Conference, where they talked about multiple challenges and opportunities facing the profession. Additional IVC coverage focuses on keynote speakers, networking events and the Appraisal Institute professionals who were honored with awards.
The real estate valuation profession continues to face numerous challenges, and the Appraisal Institute’s national officers work tirelessly to address these challenges on behalf of AI’s professionals. Read what AI’s incoming 2018 Executive Committee has to say about the organization, the profession, and plans and programs slated for the coming year.
The misclassification of workers as independent contractors is a hot issue — one that’s attracted government attention as agencies grapple with regulating so-called gig economy companies. It should grab the attention of valuation firms as well. For small and medium-sized firms in particular, the liability risk for misclassification has been relatively low — but the consequences very high.
House and Senate Republicans put the final touches on a tax reform plan that represents the first major change to the U.S. tax code in decades. Reaction from the real estate community has been mixed, and once the bill becomes law, there will be several important items for appraisers and valuation firms to consider.