The best way to value special purpose real estate is to understand what comparable properties have sold for in the area. To do this, you need to conduct thorough research and determine what the market will bear. A specialty property appraiser will use several factors to determine the value of a specific property, including its location, size, condition, floor plan, and more. Listed below are some of the most common methods. Read on to learn more. But if you’re unsure of which method to use, it’s better to ask an appraiser for a professional opinion.
A commercial property may be unique in one or two criteria, but not in others. A school building, for instance, isn’t that unique in comparison to a standard office building, but it may be more suitable for special purposes, such as a bowling alley or an amusement park. If a school building is in the same region as a standard office building, you may want to convert it into apartments. Another example would be a gymnasium that serves multiple functions. A large indoor space could be transformed into an indoor swimming pool, fitness center, or part of a parking garage.
Another type of special purpose property is called infill land. Infill land is between existing buildings, while brownfield land is previously developed and may be contaminated. Whether the property is commercial or residential, special purpose real estate has its own unique characteristics. Some examples include car washes, parking lots, schools, and churches. The vast majority of these properties are used for public purposes, although a portion of these properties are purely for agricultural use.