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

September 12, 2017

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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Schneider Saddlery

Schneiders was founded in 1948 and for 70 years, our team has satisfied millions of customers worldwide by providing the largest and most up-to-date selection of quality products. Specifically designed for the needs of the English, Western, and Arabian exhibitor, and the expanding trail riding market, we offer equestrian riding supplies, horse blankets and sheets, Western tack, English tack, English saddlery, horse care and equestrian apparel.

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