Tuesday, January 31, 2023 | The Latest Buzz for the Appraisal Industry

Is Now a Good Time to Get Into Commercial Appraisal Review?

Real estate appraiser conducting a commercial appraisal review assignment while wearing a protective maskIn a word, yes. Based on recent market data regarding the recovery of commercial real estate following the COVID-19 pandemic, appraisers would do well to add commercial appraisal review assignments to their valuation service offerings. Keep reading to learn why now is a great time to gain or enhance your commercial review skills with our new CE course, Introduction to Commercial Appraisal Review.

How have commercial sectors been impacted by COVID-19?

It is anticipated that some commercial sectors, such as hospitality and retail, will have a slow recovery following the pandemic. Commercial real estate may also be negatively impacted through declines in rent, increased cap rates, and disrupted business activity into the third and fourth quarters of 2020 and possibly beyond.

Based on a recent COVID-19 commercial real estate impact survey completed by Integra Realty Resources, conducted from March 31–May 1, 2020, more than half (57.4%) of the commercial market participants expect a decrease in the immediate short-term rents while 41.8% of the respondents expect rents to stay the same. In regards to capitalization rates, 44.5% of the respondents expect an immediate, short-term increase on capitalization rates. While a majority of the respondents expect a return to normal business operations by the end of 2020, 30.0% expect disrupted business activity beyond the end of the year.

Many hotels, stores, and restaurants expect to see only a partial return of customers after re-opening, and some commercial property managers and owners have already experienced missed rent payments. Additionally, office vacancy rates are expected to increase by the end of the year possibly to an all-time record.

NEW Course: Enhance your commercial review skills and methods. Enroll in our online CE course, Introduction to Commercial Appraisal Review.

Why is now a good time to sharpen your commercial appraisal review skills?

During these uncertain times, commercial property owners may decide to file tax appeals to reduce their property taxes due to the impact of COVID-19. Additionally, lenders, investors, developers, attorneys, and other users of commercial valuations may request a commercial appraisal review for a variety of reasons during and following the pandemic due to a concern about increasing rental delinquencies, higher vacancy rates, and slower or even halted development activity.

Consequently, now is a good time to add commercial appraisal review assignments as a valuation service you offer to potential and current clients. Or, if you already perform this service, it’s a good time to enhance your current commercial appraisal review skills and methods.

FREE Guide: Looking to upgrade your appraisal license? Learn more with our free upgrade guide. Packages with payment plans are available.

The post Is Now a Good Time to Get Into Commercial Appraisal Review? appeared first on McKissock Learning.

Jeff Bradford

Discover Your Passion

What are you passionate about? Is it appraising? Do you find that time just flies by when you’re working on an appraisal? Appraising has a

Read More »