Site Analysis

1
Chapter 4

• Site Analysis

2
What Really Matters

• Utility matters
• Land, Bricks Mortar, Plumbing, Floor Roof
  have no inherent value
• Must relate the physical features to utility to
  understand value

3
What is the Site?

• Land is the unimproved land - Raw land
• Site is the improved land
• streets, sewers, water, electricity

4
Property/Legal Description

• Street Address - not a legal description
• Metes and Bounds - series of distances
  directions
• Commonly used with Certified Survey Maps
• Lot and Block Subdivision
• Government (Rectangular) Survey
• Sections, Township, Range, 1/4 Section

5
Non-Ownership ImpactsLimitations on the Bundle
of Rights

• Zoning
• Deed Restriction -- private zoning
• Assessment and Taxes
• Easements Encroachments
• Leases

6
Zoning

• Conforming vs. Non-Conforming Use
• Special Districts
• Historical (see Fort Sheridan)
• Wetland/Flood Plain
• PUD
• Shoreland Preservation, Scenic Riverway

7
Zoning Cont.

• Subdivision vs. Site Plan Approval
• Permitted Uses
• Conditional Uses
• Lot Size
• Setbacks
• Lot Coverage, Floor Area Ratio, Density
• Parking, signs, etc.

8
Deed Restrictions

• De Facto Zoning
• Privately Enforced
• Home Owners Association (Seaside Ex.)
• Condominium Association

9
Property Taxes

• Property Taxes
• Special Assessments
• Tax Abatements
• Special Tax Legislation
• Prop 13, Use Value assessments
• Consider relationship of Assessed Value to Market
  Value
• Effects of Sale on Assessed Value

10
Easements / Encroachments

• Easements / Encroachments
• View Property as a bundle of property rights
• Easement reflects owners or previous owner
  carving out a piece and selling it
• Utility easements are common
• Important to identify any that impact value
• Encroachment -- improvements crossing property
  line

11
Leases

• Leases
• Do any 3rd parties have occupancy or other use
  rights
• Land Leases

12
Factors of Site Value

• Size of site
• In general, value increases at a decreasing rate
• More is better, but at a decreasing rate
• Except, if too small for optimum use
• Watch for size/density thresholds
• Size relative to other adjoining sites
• smaller lots go up in value, larger lots go down
• Size can relate to development densities

13
Factors of Site Value

• Shape of site
• irregular shapes
• frontage vs. depth

14
Factors of Site Value (cont)

• Corners or Cul-de-Sacs
• Corner lots more valuable for retail
• for residential, good or bad
• cul-de-sac increases value
• 2 - 6 but not sure
• Plottage vs. Plattage
• plottage value - combining small lots into one
• plattage value - subdividing one lot into many

15
Factors of Site Value (cont)

• Topography, contour, soil
• Do slopes pose increased building costs
• Can soils support buildings
• Is property in a flood plain
• Is any earthwork or fill required for building
• Excess Land
• extra land may be of value
• Key Issue Can excess land be sold separately

16
Factors of Site Value (cont)

• Micro neighborhood
• Positive or Negative impacts from nearby sites
• Views, odors, noises
• Maintenance of neighboring properties
• Environmental Laws and Regulations
• Any known contaminants or environ. problems
• Endangered species
• Typically assumed away by appraisers
• (Appraisal vs. valuation)

17
Factors of Building Values

• Size
• Key characteristic associated with value
• Bigger is better, but at a decreasing rate
• Market typically talks in /Unit
• If size is outside of typical range, general
  trends may not hold
• Measurement standards vary by market and property
  type
• Be consistent with net/gross, usable/rentable

18
Factors of Building Values

• Building Materials and Quality(Utility is the
  key issue)
• Typically higher values for attractive,
  functional, long-lasting, low-maintenance,
  efficient materials
• Brick stone preferable to wood
• Quality extend life?
• Preferences vary by market

19
Factors of Building Values

• Design
• Functional efficiency
• Efficient layout for intended use
• Minimal unusable space
• Ratio of Net Rentable Area/Gross Area
• Attractive, desirable space
• Quality architecture

20
Factors of Building Values

• Proportion and Adequacy
• Residential -- Bedrooms, Bath
• Warehouse -- Docks, office space
• Office -- Elevators, bathrooms, offices/cubes
• Hotel -- Lobby area, meeting rooms, amenities

21
Factors of Building Values

• Condition (Age and Effective Age)
• Structural condition, damage
• Remaining life on short-lived capital items
• roof, HVAC, asphalt parking
• Building code compliance (ADA, earthquake)
• Deferred maintenance
• Age Effective Age
• Effective age -- renovation, capital
  replacements, etc. can extend life of bldg.

22
Factors of Building Values

• Compatibility Conformity
• Significant differences from market norms gt
  addition risk
• (Plumbing supply/apartment bldg)
• Bigger issue for residential uses
• Modern architecture in traditional neighborhood
• Very large or small compared to neighborhood

23
Factors of Building ValuesIndustrial Buildings

• Ceiling height
• Docks -- number and layout
• Power/wiring
• Bay size
• Sprinkler
• office space

24
Factors of Building ValuesOffice Buildings

• Layout, floor efficiency
• Floor plate
• Operating costs
• Tenant build-out (carpeting, partition walls)
• Parking
• Elevators

25
Factors of Building ValuesRetail Buildings

• Visibility signage
• Parking
• Mix of anchor space with other tenants
• Layout, floor efficiency
• Operating costs
• Tenant build-out (carpeting, partition walls)

26
Factors of Building ValuesHotels

• Room size, finishes and room mix
• Specialty rooms, jacuzzi suites
• Building layout
• Interior vs. exterior entries
• Parking
• Amenities -- pool, exercise room, meeting space,
  lobby