Courts, market participants and valuation professionals have expressed widespread concern about the broad range in real estate values presented by opposing litigation experts regarding single-tenant, big-box properties, according to an article from the Summer 2019 issue of The Appraisal Journal.

“Valuation Methods and Dark Big-Box Theories,” by Paula K. Konikoff, JD, MAI, AI-GRS, and Leslie P. Sellers, MAI, SRA, AI-GRS, addresses ad valorem tax and eminent domain cases, and analyzes the collection and analysis of data that are as similar as possible to what is being appraised, including any associated leases or other financial benefits or restrictions, and the making of credible adjustments in order to develop credible opinions of value..

The authors emphasize that courts, market participants and valuation professionals have become increasingly concerned about the wide range in value opinions. They note that although the issue is the same with regard to appraisal methods used for retail, industrial and office properties, the greatest concern is related to single-tenant retail properties, from smaller stores to large buildings housing credit tenant retailers.

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