Course Description and Outline

CPD 121: Submerged Land Valuation

Pre-requisite: None.

This two-lesson course is intended to provide guidance and advice with respect to the valuation of commercial waterfront properties and submerged land. It assumes that the reader knows the theory and application of the real estate appraisal process and has experience in completing real estate valuations for typical properties for which there is usually ample market data. After reading the course materials, the reader will have a good understanding of the techniques for appraising waterfront and water lots, and the challenges these properties can present. This course is intended for real estate professionals who are considering "getting their feet wet" in working with these properties.

Course Outline

FOREWORD: Introduction To Professional Development Courses

LESSON 1: Commercial Waterfront Valuation

  • Instructor's Comments
  • Waterfront Property Uses
    • Marine-Related Use Factors
    • Development Use Factors
  • Valuation Considerations
    • Physical Attributes
    • Legal Considerations
    • Market Considerations
  • Valuation Methods and Techniques
    • Waterfront Properties: Shoreline and Upland
  • Specialized Considerations for Waterfront Valuation
    • Improvements on the Upland
    • Valuation of Marine Improvements
    • Small Islands
  • Commercial Waterfront Valuation Case Studies
    • Case Study 1.1: Riparian Rights Valuation
    • Case Study 1.2: Industrial Waterfront Valuation
    • Case Study 1.3: Tunnel Valuation – Submerged Land Right of Way

LESSON 2: Submerged Land Valuation

  • Preliminary Steps in Submerged Land Valuations
    • Purpose and Intended Use
    • Scope of the Assignment
    • Value Definition
  • Data Collection and Inspection
    • Sourcing Market Information
    • Data Collection Checklist
    • Inspecting Submerged Land/Water Lots
  • Valuation Techniques for Submerged Land
    • Fill Cost Method
    • Direct Comparison Approach
    • Utility Method
    • Zone Value Method
    • Percentage Method
    • Overall Method
    • Extraction Method
    • Capitalization Method
    • Residual Income Method
    • Selecting an Appraisal Technique
  • Submerged Land Valuation Case Studies
    • Case Study 2.1: Utility/Zone Value Method
    • Case Study 2.2: Fill Cost Method
    • Case Study 2.3: Determining Percentage Value Relationships
    • Case Study 2.4: Salty's Marina
    • Case Study 2.5: Apportionment of Water Lot Value
    • Case Study 2.6: Industrial Water Lot Highest and Best Use Analysis
    • Case Study 2.7: Rent Analysis for Industrial Submerged Land
    • Case Study 2.8: Proposed Waterfront High-Rise


  • The Final Quiz

If you have administrative questions, please email us at If you have a comment on this page or a suggestion for additional website features, please email us at