The primary determinant of value is what a buyer would be willing to pay in a competitive and open market under all conditions requisite to a fair sale. A dual approach was implemented in valuation of the subject property. First, a direct sales comparison approach was employed, in which comparable market sales were surveyed to establish a market value. The age and condition of the property is taken into consideration, as well the value per square foot which establishes a basis for price across product within the segment. The resulting averages are used to assess a total value respective to the subject property.

Second, an income approach was employed, in which annual income from potential gross rent is the basis. Potential net operating income is valued at an estimated market cap rate, resulting in an overall market value for the property. Operating assumptions, increases in rent and expenses, and property tax reassessment values are estimated over a holding period, from which an estimation for potential returns can be derived.