RP004-OOO - Appraisal of Basic Warehouse Facilities OnDemand

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New Online Course!  You will not find this course offered anywhere else!

• A warehouse just a box right? They all look the same right?
• Do you know what adjustments to make for warehouse sale comparables?
• How many types of warehouses can you identify?
• Did you know that warehouse requirements for clear height keep changing?
• Do you know how sprinkler systems influence maximum clear height?
• Do you know how the levelness of flooring influences maximum clear height?
• Did you know that floor thickness standards are changing for some warehouses?
• Do you know how to tell whether a warehouse has adequate truck maneuvering space?
• Do you know what characteristics are included in sales adjustments for warehouses?
• Do you know how online retail sales is influencing the warehouse market?

Course Description

This course was developed specifically for the commercial appraiser who wants to branch out into the specialty of appraisal of basic warehouse facilities. This is an advanced course. The course assumes that the student appraiser has had training on the sales comparison approach and the income approach including discounted cash flow analysis as a prerequisite. This course ties that training to the specialty of warehouse facility appraisal.

The initial chapters give the appraiser a foundation in the reasons why warehouse properties are increasing in demand, how they are configured and designed and the unique challenges they pose to the appraiser. Primary and secondary value drivers for warehouses are examined. The primary physical and operating characteristics are discussed. The sales comparison approach material addresses how adjustments are addressed. The income approach chapters familiarizes the appraiser with how to apply both direct capitalization and discounted cash flow analysis to valuing the leased fee interest. Material is included to give the appraiser an introduction to fee simple value analysis and valuation of below market occupancy properties. Based on a client need, the appraiser may encounter either of these types of assignments.

Instructional Methods

Classroom delivery methods include lectures, discussions and individual/group exercises and assignments. eLearning delivery methods include ondemand access to narrated lectures and lecture assessments online via My ASA Courses.

Course Audience

This course is for students who have a basic understanding of how to appraise complex commercial real estate such as fueling station/c-store, car washes, lodging properties, nursing/assisted living facilities, etc.  The course teaches how to allocate/segregate the various components inexorably connected to the real estate; however, it does not qualify participants as business appraisers and does not teach business valuation in a formal manner. 

Approvals

This course is CAP approved by the Appraisal Foundation.

This course is approved by the International Distance Education Certification Center (IDECC). 

This course has been approved for 6 CE hours, unless otherwise noted, in the following states:

Agenda

The following topics are covered in this course:

• Module 1: Course Overview
• Module 2: Warehouse Facilities, Facility Characteristics and Market Trends
• Module 3: Sales Comparison Approach for Basic Warehouses
• Module 4: Income Approach – Direct Capitalization for Basic Warehouse Facility Appraisals
• Module 5: Income Approach – Discounted Cash Flow Analysis for Basic Warehouse Facilities Plus Supplement on Cost Approach

Learning Outcomes

Upon completion of this course,students will be able to:

Module 2: Warehouse Facilities, Facility Characteristics and Market Trends
1. Differentiate the basic types of industrial facilities.
2. Distinguish which characteristics are primary value drivers for warehouse facilities
3. Distinguish which characteristics are secondary value drivers for warehouse facilities
4. Compare the demand drivers for warehouse vs. other industrial facilities.
5. Differentiating major market trends influencing warehouse design and location
6. Compare the types of leases used for warehouse facilities
7. Differentiating and selecting the appropriate appraisal assignment

Module 3: Sales Comparison Approach for Basic Warehouses
1. Illustrate the strengths and weaknesses of the sales comparison approach in applying it to warehouse facilities.
2. Demonstrate the use of appropriate guidelines for selection of comparable sales– for valuation of a warehouse building.
3. Properly apply transactional and property adjustments in the sales comparison approach to warehouse facilities.
4. Distinguish between major factors contributing to the economic characteristics adjustment for a warehouse facility.

Module 4: Income Approach – Direct Capitalization for Basic Warehouse Facility Appraisals
1. Distinguish how and when to use direct capitalization for valuation of a warehouse facility.
2. Analyze operating expenses found in Warehouse facilities.
3. Demonstrate the use of appropriate guidelines for selection of rent comparables sales – for valuation of a warehouse building.
4. Illustrate direct capitalization for valuation of Warehouse facilities.
5. Examine and consider the key factors in estimating the overall capitalization rate for a Warehouse facility.
6. Demonstrate proper data collection techniques to support overall capitalization rates for Warehouse facilities.
7. Analyze and compare the strengths and weaknesses of various methods of estimating overall rates for Warehouse facilities.

Module 5: Income Approach – Discounted Cash Flow Analysis for Basic Warehouse Facilities Plus Supplement on Cost Approach
1. Distinguish when present value of rent loss or discounted cash flow analysis is the appropriate method for the income approach for a warehouse facility.
2. Examine the comparative strengths and weaknesses of present value of rent loss method vs. discounted cash flow analysis for a warehouse facility.
3. Demonstrate proper application of present value of rent loss analysis in the valuation of warehouse facilities.
4. Analyze how income and fixed, variable and partially variable expenses are built into a discounted cash analyses for a warehouse facility.
5. Demonstrate proper application of discounted cash flow analysis in the valuation of warehouse facilities.