Agenda - Council - 04/11/2017 - Laserfiche WebLink

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SALES COMPARISON APPROACH In the Sales Comparison Approach, sales of comparable properties are adjusted for differences to estimate a value for the subject property. This approach relies on the principle of substitution, which holds that when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming that no costly delay is encountered in making the substitution. A unit of comparison such as price per square foot of building area or effective gross income multiplier is typically used to value the property. Adjustments are applied to the unit of comparison from an analysis of comparable sales, and the adjusted unit of comparison is then used to derive an opinion of value for the subject property. The following pages contain a summary of the improved properties that were compared to the subject property, a map showing their locations, detailed write-ups of each sale, as well as the adjustment process. To apply the Sales Comparison Approach, we searched for sale transactions within the following parameters: • Property Type: Retail • Location:Throughout the Northwest Submarket • Size: 5,000 to 25,000 square feet of NRA • Age/Quality: Ideally within 10 years effective age of the subject • Transaction Date: 1/1/2014 to present Summary of Comparable Sales A search of public records and proprietary data sources was conducted to identify recent improved sales and listings in proximity to the subject and having a similar highest and best use. Out of all data reviewed, the following sales are selected as the best indicators of the subject's value. We choose price per square foot of Net Rentable Area (NRA) as the most appropriate unit of comparison because market participants typically compare sale prices and values on this basis. 72 1 Page