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Commercial property valuation in Webb is more complex, presenter says
Summary
Presenters cautioned that commercial valuation uses different metrics than residential property, often relying on income and net operating income calculations; waterfront and seasonal properties pose additional challenges for local sales comparisons.
Robert Kar told attendees that commercial properties are valued differently from residential ones, with valuation more dependent on how a building is used, income metrics, and net operating income. "Commercial is a much different animal," he said, noting that appraisal teams look at sale prices per square foot and income characteristics when comparable commercial sales are available.
Kar said seasonal, waterfront, and tourism-driven markets complicate local comparisons because sales can be concentrated and prices vary dramatically by location. He noted that the state equalization process weights residential sales heavily, which can skew estimates when commercial values are not rising at the same pace as residential properties.
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