ABSTRACT
This chapter presents multipliers of annual income which reflect a property's market value as well as procedural guides to derive the value if this is the approach preferred by local officials. The former are useful for quick approximations of real property value; the latter are used in instances where more detailed analysis is desired. It contains the component information required by the procedural guides to compile the multipliers found in Exhibit 16-1. The information contained was obtained from a national survey of fifty-four appraisers — six from each of nine census-defined regions. With this information, net operating income and capitalization rates could be determined. The procedures to determine real property value for commercial uses are essentially similar to those employed for residential uses. Information on the annual operations of office space was obtained from field appraisers and augmented, where necessary, by the Office Building Experience Exchange Report, distributed by the Building Owners and Managers Association.
