Course Description and Outline

CPD 129: Industrial Property Valuation

Pre-requisite: Students will benefit from a working knowledge of the theory and application of the three approaches to value, in particular the income approach. Recommend BUSI 331 / CPD 131 or equivalent (e.g., Trading Services / real estate sales course).

This course provides an overview of industrial properties, with a focus on the identification and analysis of the site and building issues most relevant to their market evaluation. Lesson 1 introduces the characteristics of these types of property and their market. Lesson 2 focuses on how these physical characteristics contribute to a property’s market value. Case studies in Lesson 2 will emphasize valuation methods and the measurement of adjustments and market factors.

Course Outline

FOREWORD: Introduction to Professional Development Courses

LESSON 1: Industrial Property Analysis - Design, Construction, and Inspection

After completing this lesson, students should be able to:

  • Describe a framework for analyzing the industrial property market
  • Discuss the relationship between the industrial site and its improvements
  • Discuss the types and key design attributes of industrial buildings
  • Describe the different construction systems and materials used for industrial properties
  • Describe common mechanical and electrical systems used for industrial buildings
  • Prepare a customized industrial building inspection form or checklist to suit the intended purpose of
    the assignment

LESSON 2: Industrial Property Valuation

After completing this lesson, students should be able to:

  • Identify key industrial valuation fundamentals
  • Estimate the market value with the cost approach, based on the land and cost data
  • Calculate stabilized net operating income for an industrial property
  • Extract capitalization rates from market data
  • Estimate the market value with the income approach, using an overall capitalization rate
  • Estimate the market value with the direct comparison approach, using a price per square foot comparison
  • Provide a reconciliation and final estimate of value for an industrial property

AFTERWORD

  • The Final Quiz


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