Garrett Connolly, Real Estate Analyst, has been with Valbridge Property Advisors | Shaner Appraisals, Inc. for over a year. He earned his bachelor's degree from the University of Missouri and is a practicing affiliate of the Appraisal Institute.
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Below is an article from the latest National Valbridge newsletter featuring our Director of Multifamily Valuation, Daniel Kann, MAI: Sherlock Holmes could very well have become an income-property appraiser. Valbridge professionals act as detectives with every market and feasibility study they perform. Most often the mystery is to deduce the highest and best use of a property; in other words, the use that would produce the highest net return on investment. Valbridge's Daniel Kann, MAI, a multifamily valuation expert, undertook such an exercise when he performed a market and feasibility study for the owner of a 14-acre suburban site. His analysis began by determining what was physically possible for the site, what uses were permitted under zoning laws and deed restrictions, and what was economically feasible. Then his examination got really interesting. To estimate demand for different potential product types, he analyzed employment and income data, other demographic information, and existing and future inventory and supply in various stages of production. He studied market occupancy, projected absorption, and estimated sales prices and asking rents for various multifamily options. Daniel and his team evaluated 31 comparable properties in addition to the overall market, and analyzed the option of holding the site for future development versus developing it immediately. The market and feasibility study concluded that the area in which the site is located could not support additional rental housing. In fact, depending on the timing of additional phases at other developments, the market could become even more overbuilt — with increased vacancy, declining asking rents and additional concessions necessary to capture tenants. Rather, the analysis revealed, a for-sale residential use would be maximally profitable. The target market: professionals and empty nesters without children who have a higher median household income. The highest-return on investment type: a patio/villa home project. Daniel’s study illuminated even more, including the optimal mix of floor plans and unit sizes. Sherlock Holmes couldn’t have produced a more revealing result. TJ Hawks, MAI, Director Q. What is your favorite property that you’ve appraised and why? A. I enjoy the challenges of a complex property. Whether it is a large, single-tenant office building or a right-of-way project that has a significant impact on the community. I enjoy the process of evaluating and identifying the problem and providing creditable results. Q: What is your favorite part of being a CRE appraiser? In many jobs the employee completes the same task over and over. An appraisal assignment generally lasts one week or less and each project provides new challenges to overcome. Each week a new challenge arises! The knowledge I have gained over the past 11 years has been tremendous. I hope to utilize my experiences in the future to invest in commercial real estate. Q. The best part about working at Valbridge? Valbridge is a forward thinking company with a network of highly-motivated, experienced and knowledgeable appraisers. If our office is engaged in a complex project, we have the network of appraisers to provide additional insight and knowledge. Q. Advice to anyone looking to get into CRE appraising? A. In this industry or any other, investing in yourself and having the drive to learn is paramount. Everyday provides challenges, but gaining the knowledge to overcome these encounters is part of the learning process. Learn every day from educational courses, trade magazines, lunch and learns, networking events and from brokers, developers and other appraisers in the industry. Q. What do you enjoy doing outside of appraising commercial real estate? A. I enjoy spending time with my wife and three children, playing golf and watching baseball. Jason Roos, MAI, Director Q. What is your favorite property that you’ve appraised and why? A. The favorite property that I have appraised was a rocket facility. It's not every day that you get to see how they are made up close and personal. Q. The best part about working at Valbridge? A. The corporate culture at VPA | SAI is excellent. There are team building events such as go-kart racing and paintball that allow you to get to know your associates better. There is also a large array of properties to appraise that keep the job interesting. Q. Advice to anyone looking to get into CRE appraising? A. Make the phone calls and build a list of trusted market participants. As an appraiser, it is our job to estimate what the market value of a given property is in the context of the current market. If you don’t talk to the people like brokers that are in the market working with buyers and sellers every day, you may not be able to accurately reflect a given market. Q. What do you enjoy doing outside of appraising commercial real estate? A. I enjoy coaching my kids’ teams. Baseball for my son and soccer for my daughter. Daniel Kann, MAI, Director of Multifamily Q. Why do you like the multifamily property type? A. Multifamily allows you to relate to your personal living experiences and you get to interact with all types of people on a daily basis. Q. What is your favorite property that you’ve appraised and why? A. The proposed Central Square in Overland Park. The project is being redeveloped in to a mixed-use destination and will be a major anchor in north Johnson County. Being able to analyze the market to determine the best product to build on the site is exciting and challenging. Q. What is your favorite part of being a CRE appraiser? A. Every day is different and challenging and requires you to think outside of the box. We are constantly pushed to grow and evolve with changing markets and must stay current with our specific trades in order to provide the most accurate opinion possible. Q. The best part about working at Valbridge? Valbridge has a tremendous network of highly qualified individuals that help make all of the employees better at their job. Being able to utilize that vast amount of data, experience, and knowledge from all parts of the U.S. is a huge advantage from an efficiency and proficiency standpoint. Q. Advice to anyone looking to get into CRE appraising? A. The valuation industry is a wonderful profession if you enjoy researching and technical writing. Every job is different with each property and location being unique, which requires creativity and analysis. Providing an opinion of value is part science (valuation methodology) and part art (supporting an opinion of value that is reasonable and consistent with market practice). Q. Something interesting about yourself? A. I am an avid traveler and foodie. I have visited 31 countries on four continents in the last 10 years. Traveling allows me to satisfy both of my passions by learning about different cultures and at the same time enjoying wonderful and unique food. |
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