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Wide Range of Big-Box Values Raises Concerns: The Appraisal Journal

October 15, 2019 08:00 AM

CHICAGO (Oct. 15, 2019) – Courts, market participants and valuation professionals have expressed widespread concern about the broad range in real estate values presented by opposing litigation experts regarding single-tenant, big-box properties, according to an article published this week in The Appraisal Journal.

The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.

An article that addresses ad valorem tax and eminent domain cases– “Valuation Methods and Dark Big-Box Theories,” by Paula K. Konikoff, JD, MAI, AI-GRS, and Leslie P. Sellers, MAI, SRA, AI-GRS – explores the collection and analysis of data that are as similar as possible to what is being appraised, including any associated leases or other financial benefits or restrictions, and the making of credible adjustments in order to develop credible opinions of value.

The authors emphasize that courts, market participants and valuation professionals have become increasingly concerned about the wide range in value opinions. They note that although the issue is the same with regard to appraisal methods used for retail, industrial and office properties, the greatest concern is related to single-tenant retail properties, from smaller stores to large buildings housing credit tenant retailers.

Read “Valuation Methods and Dark Big-Box Theories” in the Summer 2019 issue of The Appraisal Journal.

Also in The Appraisal Journal’s Summer 2019 issue:

“Through the Looking-Glass: Debunking the ‘Dark Store’ Idiom,” by David C. Lennhoff, MAI, SRA, AI-GRS; and Richard L. Parli, MAI, discusses some of the misunderstanding around fundamental appraisal terms and methodology, such as fee simple, market value, and highest and best use in the context of big-box assignments and how this leads to divergent valuations.

“Property Rights Brought to Light: Principles and Misconceptions,” by Gary E. Heiland II, MAI, AI-GRS, explores the root of inconsistent valuation methodologies, which often is found in differing understandings and misconceptions regarding property rights.


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The Appraisal Institute is a global professional association of real estate appraisers, with nearly 18,000 professionals in almost 50 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at




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