KO Appraisal
Commercial service
Special-Use
Properties built for one purpose: self-storage, medical, hospitality, houses of worship, and vacant land.
What makes this assignment different
Few or no local comparable sales exist, so the analysis leans on the cost approach or on national transaction data, and the highest-and-best-use question becomes the central one.
Who orders this appraisal
- Owners
- Lenders
- Investors
- Attorneys
What the engagement covers
- Whether the value lies in the real estate or in an operating business attached to it. For many special-use properties a material share of value is the going concern, and separating real property from business value and from personal property is the central analytical task.
- The depth of the buyer pool. Property that only one kind of operator can use trades rarely and to few people, which affects both the rate and the exposure period.
- Whether the improvements are an asset or an obstacle. Highly specialised improvements can reduce value where the highest and best use is conversion, because they represent a demolition cost.
- Licensing, entitlement, and regulatory approval where the use requires it. These can attach to the operator rather than to the property, which affects what a buyer is acquiring.
- Highest and best use, which has to be resolved explicitly rather than assumed. A special-use property operating at its current use is not automatically at its highest and best use.
How it works
- Operating statements for the business as well as the property, where the two are combined.
- Any franchise, management, or licensing agreement, and whether it transfers on sale.
- A schedule of furniture, fixtures, equipment, and any specialised plant, with age and condition.
- Entitlements, conditional use permits, and operating licences, with their transferability.
- Detail of any environmental condition, which is more common in automotive and industrial special-use property.
What you receive
USPAP-compliant appraisal of special-use property. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.
| Appraiser | Kevin O'Brien, MAI, SRA |
|---|---|
| License | CA Certified General Real Estate Appraiser #3005065 |
| Standards | USPAP compliant |
| Turnaround | 1–3 weeks standard; rush available |
| Testimony | Deposition and expert witness testimony available |
Common questions
Which approach to value governs for special-use property?
No single approach governs. The cost approach carries more weight than usual, because special-use property trades infrequently and its improvements are often purpose-built. Income capitalisation applies where the property produces rent, but for owner-operated assets the income is the business’s, not the property’s, and the analysis has to allocate. Sales comparison is often the weakest approach precisely because true comparables are scarce, and a report should say so rather than force it.
What special-use subtypes do you appraise?
Day care, theatres, hospitals and medical facilities, dormitories, and landfill; plus automotive uses including car wash, fuel and service station, auto repair, auto sales, parking structure and truck stop; restaurants across fast food, full service and limited service; and lodging from limited service through resort and convention, per his declared competency.
What is the most common error in these valuations?
Capitalising the operating income of a business and reporting the result as real property value. That figure includes the return on the business and on the equipment, and it will not survive review by a lender, a court, or the IRS. Where the assignment needs real property value alone, the allocation has to be explicit and supported.
Next step
Tell me about the property.
Most assignments start with a short call, property type, the purpose of the appraisal, and the deadline you are working against. You get a fixed quote before any engagement, never contingent on the value reached.
Typical commercial fees range $2,000–$4,000. Residential and simpler assignments quote lower. Every engagement is quoted in advance, so the figure is known before work begins.