The Valbridge Women's Council (VWC) recently held its inaugural meeting. The vision of the council is to empower Valbridge professional women for advancement, growth and development in all facets of life.
The Valbridge Women's Council serves as a platform for the growth and development of Valbridge Property Advisors' professional women through mentoring and education, national recognition, networking opportunities and other resources geared toward opportunities for advancement and self-improvement. The council will hold annual events and forums for the development of its members. Valbridge believes in the importance of diversity in the work place and embraces women in leadership as a core principal. At Valbridge, various women hold executive positions within the company with decades of experience across diverse valuation categories, some holding the highest level of commercial appraisal designations in the industry. This includes the Appraisal Institute MAI designation, one of the highest levels of professional achievement in the industry. Leading up to the launch of the Valbridge Women's Council, Valbridge Property Advisors actively highlighted the women of Valbridge to bring attention to the need for more women to enter the commercial appraisal industry. Valbridge is proud to celebrate the accomplishments of female leaders in the company and encourage professional development for the women of Valbridge and beyond. The Kansas City office boasts four VWC members - congratulations to Jessica Perryman, Senior Appraiser and Joanne Montgomery, Director of Operations for becoming VWC Directors. Audrey Teixeira, Appraiser and Lindsay Wells, Researcher are also VWC members.
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Valbridge appraises both existing and proposed hotels throughout the region! Because we're knowledgeable on this property type, we decided to pick the brain of our own Brock Heyde, MAI about what to take into consideration when appraising in the hospitality industry! Hotels are an Operating Business: Many hotels often conduct other businesses such as restaurants/bars, banquet/meeting room rentals, and business services. Each business component requires its own income and expense analysis.
Hotels are Labor Intensive: In order to accomplish the goals of (1) executing 24-hour leases and (2) operating other related businesses, hotels are very labor intensive. Labor categories often include a general manager, front desk staff, housekeeping, maintenance, food and beverage staff, and sales and marketing staff. Depending on the size, location, and chain segment, additional labor categories can include security, human resources, accounting, and uniformed staff (bell-staff, valet, and concierge). Hotels are Capital Intensive: The excess wear and tear on hotel real estate and FF&E, due to the public nature of the facilities, requires annual expenditures for property renovation and improvements (that other real estate types do not require). There is a Formula for Measuring ADR: ADR (Average Daily Rate) is a measurement of the average rate paid for rooms sold. This is calculated by dividing the room revenue by rooms sold. Hotels are Typically "Branded" with a Chain Affiliation: In essence, the chain affiliation partially replaces the real estate broker as the leasing agent. Hotels Can Be Grouped Based on the Actual Average Room Rate: This method groups hotels in what is called "Chain Scales", with segments such as "Luxury", "Upper Upscale", "Upscale", "Upper Midscale", "Midscale", and "Economy". Independent hotels, regardless of their average room rates, are included as a separate chain-scale category called "Independent". We hope this has been helpful! Click here to contact our expert and contributor Brock Heyde, MAI! One of the primary pillars of all good appraisals are strong sale comparables. This is why we exercise thoroughness in attempting to confirm all the sale comparables (comps) we use in our analyses. It is easy to use only the online information available (such as from CoStar or Xceligent) or the data recorded on the county’s Sales Validation Questionnaire, but our firm makes a point of speaking directly with those involved in transactions to obtain the story behind the sale. This is integral to the report because the information available online is not always accurate. Speaking with a person involved in a sale (a broker, buyer, or seller) allows us to not only confirm details, but to learn the context of the transaction and the property history. These factors help determine a final value. What many may not know is there are occasional instances of online information and county questionnaires being inaccurate. In fact, we have run into this when confirming sales. In one example, our appraiser found that the questionnaire obtained from the county inaccurately reported the sales price by nearly $20,000. With large amounts of money in the balance, we need to be as accurate as possible. When choosing a valuation firm make sure to utilize one that properly completes the sales confirmation process. Valbridge Property Advisors' dedication to accurate valuation means that we go the extra mile when it comes to the details, such as proper sale confirmations, necessary to ensure an accurate valuation.
Valbridge values both existing and proposed car washes throughout Kansas and Missouri! In an effort to end the cycle of little-to-no information when researching for these properties, we've compiled a list of things you need to know when appraising car washes! Specialization: One thing many people need to understand before researching car washes is that they are a specialized property and built for single-use. Often, normal appraising rules don't apply. Capture Rates: Some people have no idea capture rates for proposed car washes even exist! These are the percentage of washes by the property that are captured from the cars passing by daily. Challenges of a Proposed Facility: When researching, appraisers have to keep in mind that there are different challenges when appraising a proposed facility, as opposed to an existing one. On top of that, car washes themselves come with their own set of challenges. Types of Car Washes: Within this property there are many different types; self-serve, full service, hybrid, exterior-only, conveyor, and many more! Operating Expenses: A lesser known fact: operating expenses for a car wash are based on a percentage of total income. Cost Approach: For a car wash, the cost approach excludes the business and intangible value. What have you seen that's unique to car wash valuation? Let us know in the comments below! Valbridge appraiser, Garrett Connolly, was a chief contributor for this blog post. Garrett has been with Valbridge Property Advisors since 2015 and is a graduate of the University of Missouri with a degree in business finance.
Some of the best things in life are free! This definitely includes several of the online resources we use in our line of work! As mentioned in previous blog posts, the report process begins by gathering data. This includes both paid and free sources, along with market participant interviews and a property inspection. Below is a collection of some of our favorite and most helpful free websites: -Economic Development Websites: These sites are really great for gaining insights into developments in your research area. The best part is, every major city should have one!
-GIS Websites: These are super helpful mapping and geographical data websites. -The US Department of Labor: This site has numerous labor statistics that help make report writing much easier! -U.S. Geological Survey: If you need topographical maps, this is definitely your site! -FEMA Flood Map Service Center Website: This site can give you extensive information about flood plains and flood risk factors. -Data USA Website: A great website for accurate data from all over the U.S.! And, last but not least: Google! What are some of your favorite free resources? Let us know in the comments below! Last week our own Jessica Perryman attended the 2017 Office Summit put on by MetroWireMedia! Stay tuned for a recap of the event below! Millennials: Millennials were a key discussion point when it came to many of the topics. Something of note; tenants will pay more for amenities to attract the millennial workforce. Coworking: It wouldn't be an office summit without discussing one of the hottest trends in Kansas City right now! Everyone was in agreement that this trend isn't going anywhere! Downtown Locations: Nothing says "live/work/play" more than a central downtown location! Suburban locations are incorporating many of these amenities as well. Market Opportunities: Many investors from the East and West coasts are looking for investment opportunities in the Kansas City area. This is especially true for office property types! For a more in-depth look at the events of that day please click here to read MetroWire's own recap! Don't forget to check out Jessica's pictures below: We're friends with some pretty smart people. This week we interviewed NNN expert Jacob Baratz, Associate Advisor with Marcus & Millichap. Valbridge Property Advisors: What are you seeing with cap rates (in terms of increasing, decreasing or holding steady)? Jacob: "Although transactional velocity has eased, pricing and yields have remained remarkably steady. The limited development during this cycle and balanced debt levels have kept cap rates relatively steady despite rising Interest Rates and tapering transactional activity. Although some buyers are choosing to postpone acquisition plans based on the belief that rising interest rates will push cap rates higher, very little elevation in cap rates has thus far emerged." Valbridge Property Advisors: What are you seeing for a spread versus treasuries and where does the market see them heading? Jacob: "The rapid 75-basis-point post-election surge in the 10-year treasury rate opened a disconnect between buyers and sellers as they attempted to reconcile higher lending costs. Since the beginning of the year, the 10-Year treasury rate has largely stabilized in the mid-two-percent range, but we anticipate rising inflation will cause the Federal Reserve to further tighten monetary policy – adding to the current rising interest rate climate. However, it should be noted that the alignment of cap rate and interest rate movement is far from linear, as demonstrated repeatedly over the last 10 years." Valbridge Property Advisors: What are some of the NNN properties you’ve seen lately that stand out? Jacob: "We believe rising wages will lift discretionary income and together with elevated consumer confidence, spur spending that will support demand for retail space – expanding grocery stores, casual dining restaurants and service based businesses (that cannot be supplanted by e-commerce) have filled retail centers and pushed vacancy rates to their lowest levels since 200." Valbridge Property Advisors: What are some up and coming NNN properties in your opinion?
Jacob: "Again, we believe that service based business will continue growth throughout 2017. These retailers, that cannot be replaced by e-commerce are likely to face steady demand – retailers like Advanced Auto Parts, AutoZone, O’Reilly." Here at Valbridge | KC, we pride ourselves on our flexibility when it comes to different report types within the appraisal industry. This week we talk with our own Daniel Kann, MAI about Market Studies; specifically what they are and why they are so important. We hope you'll learn something from Daniel in this post, we certainly did! What is a Market Study? "A market study identifies the demand drivers for a particular type of property in a specific market or submarket. It calculates the residual demand based on current and projected growth and the amount of existing and future supply. In comparison, a marketability study focuses on how one particular property will interact within a market or submarket. Market studies are most commonly used in the multifamily space due to apartment projects being built on a speculative basis." Why Don’t Very Many People Perform Market Studies in KC? "Market analysis is part art and part science and requires an in depth analysis of the underlying fundamentals that drive supply and demand for a particular property type. The level of analysis included in a market study is not commonly utilized in daily appraisal practice creating a specialized niche within the valuation industry." Besides Here, Where Else Have You Performed These Studies? "I have recently traveled to Dallas, Richmond, Detroit, Jersey City, and New Orleans for market analysis. Traveling to an unfamiliar place and spending the time necessary to gain geographic competency allows you to learn interesting things about a particular city. After studying the urban core of Richmond, Virginia, my wife and I decided Richmond was a place that we would enjoy visiting and are planning to travel there in the near future." See Some of Daniel's Projects Below: We hope you were able to learn a little more about Market Studies! If you are interested in learning more or having a market study performed, click here to contact Daniel Kann. Since 2010 Daniel has specialized in all aspects of multiunit valuation, with an emphasis placed on marketability/feasibility studies and valuation for new construction. The last several years have been extremely active for multiunit housing. Daniel and the team completed valuation and consulting assignments totaling $2.3 billion in 2015 and $1.90 billion in 2016. Recent assignments in Kansas City include One Light, Two Light, Mission Farms, Woodside Village, Roaster’s Block, 51 Main, The Vue, Avenue 80, Prairie Fire Apartments, Union at Berkley Park, Heights at Linden Square, WaterSide on Quivira, and numerous loft and conversion projects in the urban core. Daniel is also active in the Section 8, Low Income Housing Tax Credit (Section 42), and senior housing space. It's a new year and that means new questions about our business and the appraisal industry in general. Buckle-up as we go over some quick facts and frequently asked questions to uncover some information that you may not know!
1. Did you know? There are 200 MAI designated appraisers total throughout Valbridge | National. 2. Did you know? Having a mentor in the industry is paramount to your success as an appraiser. 3. Did you know? Kansas chartered banks no longer require land valuations for appraisal reports. 4. Did you know? VPA | KC alone has appraised over 600 Million square feet of CRE in the last year. 5. Did you know? Kansas City is experiencing an influx of CRE development currently. 6. Did you know? The appraisal process is threefold: gather, analyze, report. 7. Did you know? There are now 68 Valbridge offices across the nation so we can serve our clients wherever needed. 8. Did you know? There are 20 employees in the VPA | KC office, which includes six MAI designated appraisers. 9. Did you know? Valbridge services all property types, including special-use properties. 10. Did you know? Valbridge Property Advisors is the largest independent national real estate valuation firm. Congratulations to our very own Brock Heyde on becoming MAI designated! The designation is held by appraisers who are experienced in the valuation and evaluation of commercial and other types of properties. To receive the MAI designation candidates must pass 13 classes that reflect 350 cumulative hours of instruction, pass a two-day comprehensive exam, hold an undergraduate degree from a four-year accredited educational institution, receive credit for 4,500 hours of specialized appraisal experience, and finally receive credit for a demonstration appraisal report relating to an income-producing property. Brock has worked as an appraiser for Valbridge Property Advisors | Kansas City, Inc. since 2012. The Valbridge Kansas City office now boasts six MAI designated members of the appraisal institute, while Valbridge Property Advisors nationally has nearly 200 MAI designated members. We are proud to have Brock on our team!
For more information on what and MAI designation means, read our previous blog post here! |
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