Commercial big-box retail: a guide to market-based valuation

| September 12, 2017

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This IAAO position paper provides guidance for the valuation of big-box retail properties. Over the last several years, issues involving these properties and theories about how to value them, such as the dark store theory, have resulted in great debate within both the appraisal and legal communities. Even though this paper concentrates on arriving at the market value of the fee simple interest of these properties, it provides guidance regardless of the specific law of a jurisdiction. This analysis focuses on big-box retail stores from 50,000 to 200,000-plus square feet; however, the market trend for big-box retail is shifting to both smaller and larger stores. For example, one major retailer has six different prototype stores varying from 15,000 to 260,000 square feet, depending on the characteristics of the trade area. The concepts discussed in this paper apply to single-tenant retail stores of any size and also to other property types.

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Neto is the only Australian retail management platform that provides a complete solution for ecommerce, POS, Inventory & Fulfilment.Our integrated back-end technology enables exceptional and consistent customer experiences via any channel be it in store, online or through a marketplace, future proofing retailers in an increasingly competitive market. We help you design, set up and run your stores across multiple channels with ease – from web, mobile, ebay and social media through to bricks-and-mortar stores.With features like in-built shipping labelling, inventory control and native accounting integration, as well as a customer contact centre and business dashboard, our powerful back-office capabilities take care of the details so you can concentrate on the big picture.

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