ADVANCED APPRAISAL INTERNATIONAL, INC.

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Eric L. Risberg, MAI, ASA, SRA

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Industries Served

Certain types of commercial and especially certain industrial real estate appraisal assignments require that an appraiser understand the economic conditions require that an appraiser understand the economic conditions that are can have a profound effect on the supply and demand of the underlying real estate assets.  This is particularly true of special purpose real estate.  Special purpose real estate is often defined as "a limited market property with a unique physical design, special construction materials, or a layout that restricts its utility to the use for which it was built" (The dictionary of Real Estate Appraisal, 4th Edition, p. 272).  To achieve the necessary level of competence in knowing the value of such a property the appraiser needs to have an understanding of the supply and demand and other critical economic aspects which may create either excessive demand for the asset, or create economic or external obsolescence for those assets.  It is critical that the entity hiring the appraiser for such a project have both a very strong ability to grasp the economic issues affecting the real estate as well as understanding the unique and oftentimes complex construction characteristics of these real estate assets.  Moreover, the appraiser will need to have, at minimum, an understanding of the demand for the other integrated capital assets which are often intertwined into the real estate, both literally and conceptually.  As an example, when a commercial appraiser undertakes a highly complex appraisal assignment involving special purpose real estate in an integrated facility such as a processing plant, or research and development facility, there will be a great deal of special-purpose equipment located within the inside of the building structures as well as located in various areas on the facility's site.  Specialized areas may include extrusion lines, equipment mezzanines, equipment pits, holding tanks, process piping, ventilation stacks, specialized flooring, specialized insulation, clean rooms, conveyor systems, loading systems, high capacity electrical bus ducts, on-site water treatment plants, settlement ponds, silos, and pressurized gas systems.

It is also important that the appraiser have the necessary work experience and other training to understand not only what is technically real estate, but what should be classified as process equipment or trade fixtures.  In these types of assignments it also necessary for the corporate valuation expert to be able to ascertain what the highest and best use of the facility is.  In addition to needing to comprehend multi-discipline valuation concepts and practices, the appraiser must also be very skilled at the cost approach to value when dealing with the real estate assets.  This is area where many appraisers are rather weak in their capabilities.  This tends to be especially true for residential appraisers that later try to upgrade their careers to commercial work.  It is also advisable to be somewhat wary of appraisal mills, that tend to claim that "all they do is appraise ____".  These firms often cut prices so low to maintain their market share in a given industry sector that the quality of their work suffers.  Further, if all they do is one thing, how can they know what to do with the property if its current use is no longer viable?  Appraisal mill, or high-volume industry sector appraisal shops, tend to use a lot of boilerplate in their reports too, since, they attempt to do a one-size fits-all analysis and will also frequently use only one approach to value as opposed to the three approaches to value (cost, income capitalization, and sales comparison). 

Advanced Appraisal International, under the direction of Eric L. Risberg, ASA, MAI has experience in many different industries.  We take pride in developing extremely insightful market analysis sections to our reports involving special purpose real estate as well as a careful evaluation and application of all three approaches to value when it is required to do so.





Accommodation and Food Services Industry
Food Services and Drinking Places
Hotels and Motels and Resort

Agriculture, Forestry, Fishing, Crop Production Industry
Animal Production
Farms
Fishing, Hunting and Trapping
Forestry and Logging
Plantations
Support Activities for Agriculture and Forestry
Vineyards/Winery

Arts, Entertainment, and Recreation Industry
Amusement, Gambling, and Recreation Industries
Moving Theaters, Spectator Sports, and Related
Museums, Historical Sites, and Similar Institutions

Educational Service Industry
Classrooms, Schools, College, Research and Development Industries

Finance and Insurance Industry
Insurance Carriers and Related Activities
Securities, Commodities

Governmental
Administration of Housing Programs, Urban Planning,
Executive, Legislative, and Other General Government Sectors
Public Administration

Health Care Industry
Hospital, Nursing and Residential Care
Social Assistance Care Services

Manufacturing Industry
Apparel Manufacturing Plants
Beverage and Tobacco Product Manufacturing
Chemical Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component Manufacturing
Fabricated Metal Product Manufacturing
Furniture and Related Product Manufacturing
Leather and Allied Product Manufacturing
Machinery Manufacturing
Miscellaneous Manufacturing
Nonmetallic Mineral Product Manufacturing
Paper Manufacturing
Petroleum and Coal Products Manufacturing
Plastics and Rubber Products Manufacturing
Primary Metal Manufacturing
Printing and Related Support Activities
Textile Mills Operations
Transportation Equipment Manufacturing
Wood Product Manufacturing Facilities

Mining, Oil and Gas Extraction Industry
Asphalt Batch Plants
Construction Industry
Quarries and Concrete Production Facilities

Publishing and Communication Industry
Broadcasting and Telecommunications
Information Services and Data Processing Services
Motion Picture and Sound Recording Industries

Technology
Electronic Device Fabrication Plants
National Security and International Affairs
Semiconductor Plants
Space Research and Technology

Transportation and Warehousing Industry
Air Transportation  [more]
Couriers and Messengers
Pipeline Transportation
Postal Services
Rail Transportation
Transit and Ground Passenger Transportation
Truck Terminal Facilities
Truck Transportation
Warehousing and Storage
Water Transportation

Wholesale and Retail Trade Industry
Automotive Industry
Building Material and Garden Equipment and Supplies Dealers
Clothing and Clothing Accessories Stores
Durable Goods and Nondurable Goods
Electronics and Appliance Stores
Food and Beverage Stores
Furniture and Home Furnishings Stores
Gasoline Stations
General Merchandise Stores
Health and Personal Care Stores
Miscellaneous Store Retailers
Motor Vehicle and Parts Dealers
Nonstore Retailers
Sporting Goods, Hobby, Book, and Music Stores

Other
Personal and Laundry Services Operations
Religious or Civic Uses
Repair and Maintenance Operations
Utilities
Waste Management and Remediation Facilities
 
Eric L. Risberg, MAI, ASA, the founder of our company, has provided appraisal and valuation clients in these industries for over 20 years.