ABSTRACT
Chapter One introduces the spectrum of valuation and the three forms of value for commercial real estate. This foundational chapter then explores the historical origins of the subjectivity of value, including the contributions of Menger, von Mises, Hayek, and Shackle. The Shackle Possibility Curve is introduced as the theoretical basis for the range of values approach to subjective valuation. A land development opportunity is discussed in light of the highest and best use framework. The market vignette for chapter 1 focuses on how an appraiser can be swayed both positively and negatively by news from the field, which harkens back to the theoretical work of Shackle.
