Widespread concern exists about the broad range in values presented by opposing experts in certain court cases where the subject is a single-tenant property. The relevant market participants—institutional investors, for purposes of this article—do not buy, sell, or use big-box retail properties that are not encumbered by bondable leases to credit tenants. Thus, when required to value these properties in the fee simple estate, valuers must attempt to reflect the thinking of market participants when there are virtually no participants in the relevant fee simple estate market. This article addresses 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 so as to develop credible opinions.
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